Is it worth selling or renting a house?

Do you have a second home and want to understand if it is better to sell or rent a house to make the most of it? We understand you, the choice is not easy. There are many factors to consider and, in any case, there is no right or wrong answer to this question. It is necessary to evaluate in what condition the house is; what are the taxes to be paid; how long it might take to sell it; if there is an emotional bond ...

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Before you can choose, we suggest that you consider all the pros and cons of both selling and renting a home. Only in this way will you be able to understand not which is the best choice, but which is the best choice for you. In any case, the advice is to get help from experts in the sector, who will surely be able to show you the way that best suits your needs!

Is it worth selling or renting a house? Advantages and disadvantages

Before evaluating the pros and cons of selling or renting a house, it is necessary to evaluate the state of the property. Is this a renovated house in good condition? Only a house in good condition will be rentable. It is then necessary to evaluate the type of homeowner: if it is, for example, an elderly homeowner who does not need the property for himself or for his children, it will be convenient to sell for simplicity. How long have you owned the house? Keep in mind that selling before 5 years from the purchase involves an extra tax on the capital gain.

If you do not meet any of these conditions, then the choice becomes complicated. We therefore evaluate in detail the pros and cons of selling and renting a house when there are no basic conditions that direct more towards one of the two alternatives.

Pros and cons of selling a house

Let's start with the pros:

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• Since 2002 the INVIM, or the seller tax, has been repealed. This makes the costs of selling the house much less onerous than the numerous tax management costs of a rental.

• Selling a house allows you to immediately obtain a safe capital, which can be reused or reinvested immediately.

• Selling a second home frees you from taxes related to that property and maintenance costs

As for the cons:

• The loss of a secure monthly income, potentially more profitable over time than capital all at once.
• Possible taxation of the capital gain if you sell it before 5 years from the purchase
• The risk that the potential long sales times of the house lead to a wrong perception of the same. Your house, uninhabited for a long time, becomes less attractive and also does not generate any returns during the months of the sale

Pros and cons of renting a house

When you think about renting a house you must first of all make some basic considerations:

• How much tax do you pay on the second home?
• How much are the maintenance costs?
• What monthly income could you get from the rent?

If the calculated annuity adequately covers taxes and expenses, then renting is a viable option