Buying A Smaller Home To Meet Loan Repayments

Many people sell their home due to difficulties in meeting their required loan and interest payment commitments.

Before rushing out and selling your home it is always best to carefully examine all the options. Sometimes the home is too big so, even though you like living there, you may decide to sell-up and move to a smaller/cheaper property.

Alternative Solution: Renting out part of your home could be an option. Alternatively you could rent out the entire house and buy a smaller house to live in.

Pros: If local property values are on the rise it might pay to not sell your home right now. By renting your home out you might gain some tax benefits and be able to claim rental expenses.

Cons: Becoming a landlord takes some work and can have its problems. You will need to find good tenants and keep the property in good renting order. You may need to consult a tax advisor, carry liability insurance and you will be required to keep good financial records.

What To Do When The House Is Too Small

Need more space than is in your current home?

Alternative Solution: Consider remodeling existing home rather than buying a new one. A more open-plan style may provide more living space. Consider enlarging, or adding, a bedroom or bathroom.

Pros: Remodeling should improve the resale value of your home. It will also save you agent’s fees and other costs associated with moving. You may need to use your home equity to finance the project.

Cons: Remodeling may mean an increase in the property taxes you pay. There is also the danger of over-improving your home. Some people fail to recoup their investment when they come to sell.

16 Quick, Low Cost, Home Improvement Ideas To Help Sell Your Home

Financing Home Improvements

No money available to upgrade your home?

Alternative Solution: Refinance or consider applying for a home renovation loan.

Pros: Renovating and improving your home can increase its market value. This could prove to be a good investment for when you do decide to sell.

Cons: Increasing the value of your home may also increase the amount of property taxes you pay (depending on the laws in your country).