An inheritance, the donation of a house or the expiry of the speculative period: There are many reasons why owners should ask if they should rent or sell their property.
Through the real estate rental come to the landlord various obligations, which bring effort and investment. This already begins with the search for a solvent and reliable tenant. If landlords decide for the wrong candidate, at the very worst they risk high costs. This is about the case if:
Rent nomads inhabit the property and refuse to pay the rent or it comes to rent losses because tenants can not afford the rent.
Tenants can put the apartment in an uninhabitable condition and the landlord must pay for necessary repairs after moving out, because the tenant is anything to get.
These scenarios threaten in particular, if landlords want to save the cost of the rental professional.
The landlord must also determine the correct rent to protect against lawsuits. Operating costs of the tenant are to be settled.
In general, repair and maintenance work. The landlord does not have to personally take care of the removal of damage to his tenant, but he is in the duty to organize a remedy by a craftsman.
The decision to rent can not be reversed without further ado. Because the termination of a tenancy must be well justified and often enough is not possible.
Also, the risk of wear and tear, ie depreciation of the property is a reason that makes owners recoil before renting. Depreciation for depreciation (depreciation) can be tax deductible and deducted from acquisition and manufacturing costs over a period of 50 years. Property built before 1925 has a 40-year depreciation period. However, this only applies to rented property and not to the property, as the land is not worn down and therefore not diminished in value.
However, many real estate owners are currently shying away from letting, because the Federal Government and, to a much greater extent, the Red Berlin Senate with socialist activism are spreading fear and insecurity. Rental price brake, Mietenteckel, purchase ban.
What speaks for a sale of the property?
For owners who want to spend neither time nor cost in the management and maintenance of their property, offers a sale. He is also an alternative to renting in these cases:
If the rental income barely or not cover the costs.
If you lack the funds for a necessary modernization or maintenance.
If the sale enables the repayment of a loan.
If you want to use the proceeds to buy a new property, such as self-occupied property, or to fulfill another dream.
If your rented property is in your possession for at least ten years or if the speculative tax is not incurred by you for other reasons.
And especially worthwhile is the sale, if the tenant moves out of the property, since the proceeds are higher. In Berlin and Munich, a non-rented property is worth on average 20 percent more than a leased property. Because a tenancy can not be terminated easily by the buyer.
Which tax aspects should be considered?
Tax aspects also play a role when it comes to the question of “renting or selling”: financing a property through a loan often benefits from a tax advantage when renting it: if rental income is lower than the loan installments to be paid, this reduces it taxable income. Conversely, rental income increases the taxable income if the property has already been paid off.
Even when selling a property, the proceeds may be taxable. Anyone who sells a property within ten years of the purchase must pay a speculative tax within this speculative period. No tax is paid to owners who themselves lived in the year of sale and in the two previous years. If your property is not yet paid off and you want to repay the loan early, the bank must agree as a lender. In this case, it usually levies a so-called prepayment penalty.
Of course, it depends ultimately on the personal circumstances of the real estate owner, whether he decides to rent or sell the property. Therefore, many more arguments can influence the election.
You are still not sure if you want to rent or sell?
No problem. We are happy to help.