Home owners often need to move for various reasons and need to decide whether to sell out or place the property with Wollongong rentals. There are many benefits to renting including tax advantages. http://www.realestatewollongongnsw.com.au

1. Thinking of Renting Out Your Home? A Few Things
to Consider
As a home owner, the thought of renting out your home to strangers may not
have crossed your mind at the time you bought the house. However, things
change over time and there may now be valid reasons for you to consider renting
out the property. The most common reasons for home owners finding themselves
in this position are a move interstate or overseas for career advancement,
difficulty meeting the mortgage through loss of employment or illness, or a
relationship breakdown.
What are Some of the Options?
Whatever the circumstances, there are a few things to consider. What is the real
estate market like in the area, and will the house sell for a reasonable price? If
that is unlikely in the current market, then renting the house until prices recover
is probably the best option. Will the likely rental income cover the cost of any
mortgage and other expenses? This may not be a huge issue if there is enough
income from other sources to make up the difference. If, however, it will cause
hardship, then selling may be the only option.
Another important issue is that of the management of the rental property.
Finding and screening tenants, collecting the rent, chasing up rental arrears,
taking care of repairs and maintenance and complying with the laws and
regulations regarding tenancy agreements are just a few of the tasks involved in
managing Wollongong rentals. Most property owners prefer to engage
professional property management agents to handle all this on their behalf, but
this cost must be factored into the deliberations.
There are some tax advantages to having an investment property. The costs
associated with holding the property are generally all tax deductible, thus
reducing the owner’s overall tax liability. The longer the property is held as an
investment rather than as a principal place of residence, the greater the tax
benefits. This also allows equity in the property to build provided the market picks
up and experiences reasonable growth.
Emotion may be the Deciding Factor

2. In deciding whether to rent or sell, there is one issue that could be the deal
breaker. There is a lot of emotional investment in a family home. Everyone
involved must understand and be comfortable with the fact that strangers will be
using this property as their home while they are paying rent. In the distressing
event that a set of bad tenants occupy the property and cause significant damage,
landlord’s insurance will cover the physical damage, but there will be emotional
turmoil that home owners may not be prepared for.
All things considered, selling versus renting is a personal decision and one that is
different for everyone. Gathering all the information and working through the
issues is the best way to make an informed decision. If selling is the best option,
then the owner is free to move on and do something else. Those who rent
intending to return have the certainty of knowing that they have a home to come
back to. Either way, there are no losers. Click here….
http://www.realestatewollongongnsw.com.au/