Are you a property owner in Borehamwood and considering what to do with your property?  You are likely thinking about what is best for you to sell or rent out your property. The next thing to consider is which option is more financially beneficial to you. This will depend on your goals, the current condition of the Borehamwood housing market and whether there is a long-term potential for capital growth if you were to hold onto your property. I hope this article will help you to make an informed decision as to which option is best for you.

Understanding the Borehamwood Market

Borehamwood is still a highly desirable place to live due to its excellent transport links to London, excellent schools and an abundance of employers in the area, particularly the newly established Sky Studios. With all this in mind, there is no doubt that there is a consistent demand for properties for both buyers and tenants.

  • Sales market in Borehamwood; Despite seeing price reduction after Price reduction on major property portals such as Rightmove and Zoopla, prices are not declining in the area. The issue is created by many local estate agents overvaluing properties to win the instruction, as this is the easiest way to convince a property owner to instruct you as their selling agent. Unfortunately, the knock-on effect is wasting sellers’ time by marketing the property at the wrong price, which then leads to price reductions, giving the Borehamwood sellers and buyers the wrong impression of the current state of the housing market. The house prices in Borehamwood have remained stagnant for the past 2 years. However, as long as a property is priced correctly due to the many drawing factors to live in Borehamwood, the property will sell in a short period of time.
  • Borehamwood rental market: The demand for rental properties remains high in Borehamwood, with supply low. This in turn, forced rental prices up in Borehamwood. This is not the only cause the other is the rise in mortgage rates, increasing Landlords’ repayments, leading to the need to raise rents to cover their mortgage payments. Being a landlord in Borehamwood, as long as you are with a competent local estate agent you will have very few void periods and enjoy a reliable monthly income.

The Advantages of Selling Your Property in Borehamwood

Selling your property provides you with an immediate lump sum, and if you plan to upgrade, this of course will be useful as you will then require to borrow less to purchase the upgraded property you require. The lump sum can also provide you with the means to invest in other investments such as expanding your rental portfolio in Borehamwood.

However, once your property is sold, you lose any benefit of capital growth that may have come in the near future, and if you wish to re-enter the property market in the future this may be more difficult if prices have risen in the meantime when you were off the property ladder in Borehamwood.

The Advantages of Renting Out Your Property in Borehamwood

Renting your property out provides you with a steady income while remaining a property owner. The rental yields in Borehamwood are the highest they have been in quite a while, and in the long term, your asset will gain from capital growth.

Keeping the ownership of the property also gives you the flexibility if you ever need to move back into it or pass it on to family.

Being a property landlord does come with many responsibilities which must be taken into account when making this decision. There are many legal requirements that you must comply with which are ever changing and increasing especially with the upcoming Rent Reform Bill. However, using a Professional local Estate agent such as L&H Residential can alleviate the stress of maintaining compliance.

Key questions to ask yourself

  • What is best for me, a long term income or capital now?
  • Will the rent the property can achieve cover the mortgage and potential expenses?
  • Do you manage the property tenancy yourself or employ a local estate agent?
  • What is the current state of Borehamwood’s property sales and lettings market?
  • Will i ever need the use of the property in the future?

Need personal Advice?

At L&H Residential, we understand that every property and landlord situation is different. We specialise in the Borehamwood market and provide bespoke advice to help you decide whether selling or renting your property is best for you.

Contact us today to help you decide what is best for you and your property needs on 0203 6171 333 or contact us via our website www.laminghope.com