Buy, Rent, or Trade? What’s the Best Way to Move Into a New Home?
Everyone knows how tough it can be to find a new home. Perhaps you decide to buy a new home and sell your current one. Sadly, problems start to arise when your old home isn’t worth as much as you thought, or the final lump sum of money you get is lower than you expected. It’s also a long and stressful task—you have to deal with estate agents, potential buyers, and loads of hidden fees.
And what if you try to rent a home? You’ll have to deal with landlords, forms to fill, and trying to find the perfect place to stay. You’re also limited to what kind of properties you can rent out, and you don’t have full control over the entire property either so if you want to plan a home improvement, you’re going to have to speak to your landlord first. If you’re unsure what path you want to take on your journey to find a new home, here’s some advice.
Don’t Buy or Rent. Do a Trade Instead
An option that not many people know about is trading. Services like 1031 exchange property will allow you to swap your current property for another, even if it’s rented. It’s sometimes known as a mutual trade. You’re essentially just swapping positions with someone else, so there’s no need to worry about expensive payments or hidden fees. You simply trade houses with someone, move all your stuff across, and then you’re good to go.
This is a great option if you’re struggling to find a house to rent or if you can’t quite afford to buy a home yet. You might even be able to reach an agreement about furniture, which makes it even more convenient because you won’t need to hire a removal team to transport all your belongings.
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Sell Your Current Home, Then Buy a New One
If you try to sell a house, you could end up going through a long and gruelling process and only receive a fraction of the money you used to buy the house. However, once it’s done and you’ve gotten your money, you can then start looking for a new home to buy.
There’s a lot to consider when buying a home. The biggest issue you’ll encounter is mortgage payments. Unless you have a stable income, you’re most likely not going to be able to afford to start a mortgage. What makes it worse is that you need a really good credit rating to even be considered for a mortgage. It’s a lifelong investment that isn’t for everyone.
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Rent Another Home
Rentals are much more convenient. They aren’t long-term investments (contracts can usually start from as short as a month) and it’s cheaper than paying a deposit and monthly mortgage payments. You won’t have complete control over the home, but it’ll be a change of scenery and you can always move on to buy a home in the future or rent a different home.
Renting multiple different locations is a great way to test the waters. You can see if you like an area before moving in permanently and investing in a home, and you can get to know the neighbours and locals so that you don’t regret your decision later on.