None of us can answer that question with any certainty.
There is a good chance that the market will be worse in a year from now or it could be the same - pricewise.
If you can get a decent amount of income from renting the property then why not keep it as a rental property for the long term ?
The National Association of Realtors estimates that a full cycle of peaks and troughs in the housing market is 16 years. The last peak was 2005 so that would put the next one at 2021.
I just inherited property also and we are selling immediatley as the property needs work, won't get much rent (divided by 8 of us) and we need money now. Hopefully your situation gives you more choices.
Good luck and if you have any questions please don't hesitate to contact me directly.
12345 Ventura Blvd. Ste M
Studio City, CA 91604
(310) 595-5522 Direct
(818) 980-5040 Office
(818) 980-5020 Fax
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Since there is great uncertainty about the market trying to wait until a recovery happens is a bad idea because no one knows when it is going to happen.
310.402.8181 Please feel free to contact me with any more questions.
You probably make more money in the long run, these days investors are looking for deals and if your property is not a deal they will not buy it.
If you are going to buy another property in the same area from the sale proceeds of the iherited property then it is better to do it now for the following reasons.
1. The property taxes of the new property will be lower than if you were to buy it when the market has risen.
2. The down payment and the loan amount required for the new property would be lower now than if the market was rising.
3, The interest rates are very low. This is a unique situation because if you remember the market in the late 70s and early 80s, when the real estate prices dropped interest rates had risen to as much as 18%. Now you have a rare occurence of low prices with low interest rates.
4. You have a bigger inventory of homes now than you can expect with higher prices and hence, a better choice.
Since you inherited the property you must check with your accountant/attorney what the cost basis at inheritance would be and the extent of capital gains you would have to pay, if any.
Bob Khalsa, CCIM
United America Realty
I think and hope it will be better in a year. If your not looking to purchase another property with the funds from your inherited property than hold on till the market improves. If you are thinking of purchasing another property I think now is the time to do so as prices are low and interest rates are low which gives you more buying power. If the property is in Studio City than your lucky as that area hasn't been hit as hard and is very desirable.
If you decide to lease or sell, let me know as I'd be happy to assist you.
Thanks and best,
The Carrabba Group