It can be surprising when you find yourself inheriting a piece of property. There are three ways you can deal with inherited property: use it, rent it, or sell it.
Moving into the inherited property can be a good option if, for any reason, it is a better place to live in than your current home. If you are not the sole heir, however, you will need to discuss such arrangements with the others. Often, one heir may end up paying the others for their portion of the inheritance. Alternatively, you can choose to pay rent equivalent to their share.
Should you eventually find that you need to sell the house you inherited, living in the inherited house for two years out of the last five reduces the capital gains tax on the property.
Inherited properties can become a source of income through property rentals. If you live nearby, then you can manage the property yourself, otherwise, you’ll need to hire a property manager to handle the tenanting and maintenance of the property. While renting out the property may not give you big money, it allows you to earn income without selling the property.
Years down the line, when the house appreciates in value, you can make the decision to sell if needed. There are tax advantages as well: you can use the depreciation of the structure to offset the rental income you get.
When the property liens are too much for you to handle or the heirs are divided on how the property should be used, selling may be your best bet.
If you’re in no rush to sell, the heirs can come together to advertise the property and put it on the market. For faster sales, however, seek the services of companies advertising “We buy houses for cash at St. Louis, MO!” online. Note that real estate companies usually specialize by area, so the property is in St. Louis, MO, and then look for these companies there.
Are You Ready?
Once you’ve made your choice, discuss it with the experts. This way, you can settle any issues and move forward.