“Keep or Sell? What to Consider When Inheriting a Property”

I inherited a detached house from my parents at the beginning of the year. Since I already own a house myself, I am undecided whether I should keep and rent out the house I inherited or rather sell it. What would you advise me and what should I consider?

One of our surveys shows that inherited properties are preferably rented out or lived in. Only every fifth person in your situation decides to sell, with the willingness to do so increasing with age. The primary reason for a sale is not the money, but the lack of use, which could also speak in your favor for the sale. In addition, the condition of the property and, last but not least, considerations for your pension planning play a very important role. You should never rush the decision.

Record high prices and high demand speak for sale

The currently record-high real estate prices and the continuing high demand, especially for detached single-family homes, put you in a very good position. So there is a good chance that you will find a solvent buyer in the shortest possible time. Before selling, also check when the mortgage expires or whether it can be transferred to the buyer. If the current interest rate on the mortgage is lower than the current level of interest, your chances are good.

Renting is becoming less attractive

When it comes to renting, respondents say their primary concern is making money. This is no longer as attractive as it used to be for two reasons: Firstly, higher mortgage interest rates are making renting less attractive. On the other hand, the record high real estate prices mean that investments in real estate are less worthwhile. Price increases like in recent years are no longer to be expected. In the current market environment, we advise you to carry out a cost-benefit analysis together with a real estate specialist.

Note the condition of the property and pension planning

The condition of the house is also important when making your decision. Many older residential units in Switzerland have a renovation backlog. It is best to call in a specialist to estimate any renovation costs. If larger investments are pending before letting, you should think twice in the current situation whether it would be better to sell. The condition of the property is of secondary importance when buying. The decision is different if you consider renting out as an interim solution so that you can later live in the property yourself or pass it on to the family. In this case you can calculate differently. When making your decision, also think about your retirement provision. Real estate, pension assets and other assets should be viewed as a whole. We recommend not rushing the decision and seeking independent advice early on in this complex matter.

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