Why NOT sell my property?

If you're thinking of selling your property, you might want to reconsider. Selling a property is not an easy decision, and it can have negative consequences for your financial and personal situation. In this article, I'll explain some of the reasons why you shouldn't sell your property, and give you some alternatives to make better use of it.

One of the main reasons not to sell your property is that you probably won't get a good price for it. The real estate market is in crisis, and prices have dropped a lot since you bought your property. In addition, banks are offering very unfavorable conditions for mortgage loans, with high interest rates and strict requirements. If you sell your property, you'll have to pay a commission to the broker, the taxes on the sale, and perhaps also a difference between the value of your loan and the value of your property. All of this will make you lose money and assets.

Another reason not to sell your property is that you might not find another one that you like more or that better suits your needs. If you want to buy another property, you'll have to search among the few available options, and you might have to settle for something that doesn't convince you. In addition, you'll have to assume the stress and time involved in moving, and adapting to a new environment. If you sell your property, you'll lose the comfort and security of having your own place.

An alternative to selling your property is to rent it.

This way, you can get extra income every month, and maintain the value of your property. In addition, you can continue to enjoy the tax benefits of having a mortgaged property. Renting your property does not mean giving it up, but rather making better use of it. You can establish a contract with the tenant that allows you to access the property whenever you want, or even sell it if you find a good opportunity. The sales process can take up to a year, so you'll have enough time to negotiate with the tenant and the buyer.

If you decide to rent your property, you'll have more options for buying another property without selling. You can use the rental income to pay part of the loan for the new property, or to save and invest in other projects. You can also opt for a loan with mortgage letters, which will allow you to access lower rates and more flexible terms. However, you must bear in mind that this type of loan involves a higher risk, since the value of the letter may vary according to the market.

To better illustrate these options, I'll give you two examples with properties in Greater Santiago:

• Suppose you have a house in Peñaflor, which you bought 10 years ago for 100 million pesos, and you still owe 80 million to the bank. If you sell your house today, you could get around 120 million pesos, but you would have to pay about 20 million between commission and taxes, and perhaps also a difference to the bank if the value of your loan is higher than the value of your house. In the end, you would be left with about 100 million or less, the same as you paid 10 years ago. On the other hand, if you rent your house for about 300,000 pesos a month, you could get about 3.6 million a year, and continue paying your mortgage with a preferential rate. That way, you would maintain the value of your house, and could save or invest that money in something else.

• Suppose you have an apartment in Providencia, which you bought five years ago for 200 million pesos, and you still owe 150 million to the bank. If you sell your apartment today, you could get about 180 million pesos, but you would have to pay about 30 million between commission and taxes, and perhaps also a difference to the bank if the value of your loan is higher than the value of your apartment. In the end, you would be left with about 150 million or less, less than what you paid five years ago. On the other hand, if you rent your apartment for about 500,000 pesos a month, you could get about 6 million a year, and continue paying your mortgage with a preferential rate. That way, you would maintain the value of your apartment, and could save or invest that money in something else.

As you can see, selling your property is not the best option right now. Unless you have a very clear exit plan or an opportunity to buy something much better, it's more convenient to rent your property and look for other ways to finance your new purchase. That way, you can make better use of your assets and avoid losing money and quality of life.

I hope this article has been helpful. If you have any questions or comments, you can write to me by clicking here. 😊

: [Average value of houses in Peñaflor]: [Costs associated with selling a property]: [Difference between the value of the loan and the value of the property]: [Average value of rent in houses in Peñaflor]: [Preferential rate for mortgage loans]: [Average value of apartments in Providencia]: [Average value of rent in apartments in Providencia]

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