In March 2021 19,466 housing transmissions were recorded by inheritance, according to the INE. This figure constitutes the highest in the last 14 years, when the operations were beginning to be recorded. Many new owners wonder what is the best way to get a profit: sell the house inherited or rent it? To answer this issue, experts from the financial comparator HelpmyCash.com tell us what are the advantages and disadvantages of each of these operations.
Among the advantages of renting housing can be mentioned the possibility of obtaining stable and long-term income. In addition, the average time to rent a house in Spain in 2021 is between 30 and 45 days, according to the rental negotiating agency, while the sale is six months, according to the idealistic portal. But the most interesting attraction has to do with profitability. According to the Bank of Spain, the gross profitability of the rent during the first quarter of 2021 was 3.7%.
Assuming, then, that a floor is inherited whose value is 250,000 euros, the average annual gross income that can be obtained ascended at 9,250 euros. This figure may be higher if the house is in large cities such as Madrid or Barcelona, where gross profitability amounts to 4.5% and even 5.5%, according to idealist. Now, to obtain these benefits, sellers must be willing to dedicate time and energy to rental steps.
While it is true that this management can be delivered to a real estate company, doing so means being willing to reduce the expected profitability. Likewise, renting the house has partners some other risks: the possibility that tenants do not pay the income or that they do not take care of the property are some of them.
Finally, we must bear in mind that rent also involves dealing with maintenance and tax costs. The most significant are the IBI, the IRPF for annual income and the share of the community. This is not mentioning the possibility of a spill, which requires the disbursement of a sum of important and unexpected money, or that breakdowns in the property, and money should be reversed.
With regard to the sale of the property, the first thing that must be taken into account is that it allows obtaining immediate liquidity, they explain from HelpmyCash. While with the rent, it would have to wait 27 years to perceive the total value of an apartment of 250,000 euros, with the sale you get this sum of money immediately. Likewise, leaning through this option allows you to save maintenance costs and payment of regular taxes mentioned above in relation to rent.
However, it is convenient to take into account a very important aspect that is usually overlooked: selling a inherited floor to keep money at the bank is not, in general, a profitable option. Inflation makes money becomes less and less and, at the end, it causes the purchasing power of citizens to decrease. In this sense, if it is decided to sell the property, it is advisable to think a reinvestment strategy to be able to get profitability. Considering some simple product to invest, such as a deposit, an investment fund or an indexed background, can be a good option in these cases.
Finally, but not least, the biggest disadvantage of the sale is that it must be faced with payment of a series of taxes, such as IRPF and municipal surplus value. But, in addition, the fees of the real estate should be considered if it is decided to sell the floor through an agency.
As always, the decision depends on the needs of each and how will new responsibilities are being assumed, they add from HelpmyCash. If the owner prefers to have a long-term income and is prepared to face rental management, he can find a good way to obtain income on the lease. If, on the other hand, he needs immediate liquidity or is not willing to face everything that involves renting a home, it will be better to sell the floor. In this case, it is convenient to reinvest the money to soften the effects of inflation.
Finally, there is a specific situation where it can be more convenient to sell, comment from HelpmyCash. These are inherited floors that are in poor state of conservation. If to rent it, reforms have to be carried out, you will have to invest money and be aware of the works. In these cases, it may be easier to sell the property. In the market there are companies, known as ibayers, willing to buy properties under these conditions, in many cases to reform them and then sell them again.
Date Of Update: 25 July 2021, 07:01
