When you decide to relocate, deciding what to do with your apartment is a big decision. Should you sell it, rent it out, move away on your own, or buy a house in your new location? Family life, mortgage, education, and asset building are all moving at the same time, so it's easy to regret making a decision based solely on emotion.
In this article, we will divide the home ownership decision when relocating into "selling, renting, and holding" and organize the practical flow when moving from selling a condominium to purchasing a detached house.
Three premises to decide first
Once you have decided to relocate, check the following three things before looking for a property.
| Assumptions | Things to check | Impact on judgment |
|---|---|---|
| Relocation period | Is it a one-way transfer, or is there a possibility of returning in a few years? | Will you decide whether to sell or rent the property? |
| Bringing your family with you | Should you move with your whole family or work alone? | Changes in temporary housing, education, and living expenses |
| Mortgage loan | Remaining debt, interest rate, and whether or not it can be rented | Sellable amount and whether or not it can be rented change |
Mortgage loans are especially important. You may need the approval of your financial institution to be able to rent out your home with a self-residential loan. Renting without permission may violate the contract, so be sure to consult your financial institution in advance.
Comparison of selling, renting, and holding
There are three main options when relocating.
| Options | Suitable cases | Points to note |
|---|---|---|
| Selling | I have no plans to return and need funds to relocate | Check the sale price, outstanding debt, taxes, and delivery date |
| Rent | There is a strong rental demand with the possibility of returning in the future | Management, vacancy, repairs, and loan approval required |
| Owning a vacant house | High possibility of returning after short-term transfer | Management costs, property tax, deterioration, crime prevention risk |
The axis of decision-making is not based on personal feelings, but rather on the possibility of returning, monthly income and expenditures, what is left over from the sale, and the stability of the family's life. If you are unlikely to return and need funds to purchase a new home, it will be easier to prioritize selling. If there is a possibility of returning and the rental income can cover the loan and management costs, renting is also an option.
Flow of selling a condominium
When selling an apartment due to a transfer, planning is important as there are time constraints.
- Check your remaining mortgage loan balance
- Request appraisals from multiple companies
- Calculate the expected sale price and remaining balance
- Sign a brokerage contract
- Conduct previews and price adjustments
- Sign a sales contract
- Perform mortgage cancellation and delivery
- File a tax return if necessary
If the sale price is less than the remaining mortgage loan balance, you will need to make up the shortfall with your own funds. If you are unable to pay off the remaining debt, it will be difficult to proceed with a normal sale. Please consult with your financial institution and real estate company at an early stage.
Selling first and buying first
When relocating, the risks vary depending on whether you sell or buy first.
| Method | Advantages | Disadvantages |
|---|---|---|
| Advance sale | Easy to read financial plan | Temporary housing may be required |
| Purchase in advance | Only move once | Risk of double loans and delayed sales |
| Simultaneous activities | Easy to reduce living burden | Difficult to adjust schedule |
When transferring jobs, time is limited, so if you force yourself to proceed at the same time, you will make poor decisions. If you don't have enough funds, it's safer to sell first.
Things to check when renting out
When you rent out your home, you will receive rental income, but you will also have responsibilities as an owner. Just because you are relocating, you cannot leave repairs and tenant care unattended.
| Check items | Contents |
|---|---|
| Mortgage loan | Is approval from a financial institution required |
| Management Terms | Restrictions on rental, private lodging, and office use |
| Estimated rent | Is it possible to cover management costs, repair reserves, and loans |
| Management company | Tenant recruitment, rent collection, repair support |
| Timing of leaving | Timing of return and form of contract |
| Tax | Real estate income declaration, depreciation |
If you plan to return in the future, it is not easy to ask the landlord to move out just because of the landlord's convenience if you rent the house under a standard tenancy agreement. If you only want to rent for a certain period of time, consider a fixed-term rental agreement. However, fixed-term rentals require contract procedures and explanation obligations, so you need to proceed carefully with the management company.
Points to note when buying a detached house at a new location
When buying a house in a new location, it is important not to decide on the living environment too quickly. If you buy just because it's close to your place of work, reasonably priced, or spacious, you may regret it due to school, transportation, disaster risks, and selling in the future.
Choosing to use temporary housing
There is also a way to live in a rental property for about six months to a year before buying, instead of buying it all at once. By actually living there, you can get a feel for commuting times, shopping, schools, traffic jams, and the atmosphere of the area.
Temporary housing will cost money, but you can reduce the risk of making a big purchase in an area you are unfamiliar with.
Check locally
- Morning and evening traffic volume
- School route and nighttime brightness
- Hazard map
- Road width and access road
- Water, sewage and septic tanks
- Nearby vacant land and development plans
- Demand for future sale
You cannot understand the narrowness of the roads, noise, smells, slopes, and night atmosphere just from online information. Before purchasing, you should always check the location on a different day of the week and time.
Role division for family decisions
Relocation due to job transfer changes the lives of the entire family. Rather than making a decision by adults alone, it is better to put the family's concerns into words and help them understand the decision later.
| Responsibility | Role |
|---|---|
| Mainly working people | Confirmation of commuting, company assistance, and relocation period |
| Partner | Confirmation of daily life, school, shopping, and medical care |
| Children | Sharing concerns about school distance, rooms, and commuting |
| Real estate company | Presenting options for sale, purchase, and rental |
| Financial institutions | Loans, rental approval, relocation funds |
At a family meeting, it will be easier to make a decision if you check what you want to avoid before deciding on your ideal home. Please share your constraints, such as wanting to avoid double loans, not wanting to change schools mid-year, or not wanting to move away from home.
I also want to read
- Flow of selling a used condominium | 6 steps from appraisal to brokerage contract, delivery, and final tax return
- What is mortgage cancellation registration? Required documents, fees, and application procedures after paying off the mortgage
- What is relocation? Mechanisms and precautions for renting your home while relocating, complete guide to choosing a company
INA&Associates' philosophy
There is no one right answer when deciding where to live when relocating. For some households, it makes sense to sell, while for others it is better to rent out the property and keep options open for the future.
We place importance on considering not only the immediate sale price, but also the family's lifestyle, financial situation, possibility of return in the future, and the asset value of the property. Real estate is an asset that is strongly connected to changes in life. The more you are in a hurry, the more important it is to organize your options before making a move.
Frequently asked questions
Q. Should I sell my house immediately if I decide to relocate?
It depends on the possibility of returning, remaining mortgage balance, rental demand, and funds for purchasing a new home. First, get both a sales appraisal and a rental appraisal, and compare the remaining balance with your monthly income and expenses.
Q. Can I rent the property even if I still have a mortgage?
Approval from your financial institution may be required. Avoid renting out your home without permission, and be sure to consult with us in advance.
Q. Is it dangerous to suddenly buy a house in the new place?
If you are not familiar with the area, you should proceed with caution. Another option is to check the living area in temporary housing before purchasing.
Q. Which is safer: sell first or buy first?
From a financial perspective, it is safe to sell first. If you purchase in advance, there is a risk of double loans or delayed sales, so please check your own funds and the amount of bridging loan available.
