Are you about to inherit your parents’ home in Jacksonville? Are you thinking of the pros and cons of inheriting a home? Being your parents’ possessor has the potential of being a course as well as a blessing. More to that, the emotional hardship of losing a loved one comes along the inheritance and you get to face a sudden financial burden you may not be prepared for. One most feared burden that comes along inheritance is the inheritance tax. This is not the only expenses that come along an inherited property, other things include property insurance and maintenance.
The Gift or The Curse
While others might see home inheritance as a disadvantage and a burden, others take it as an advantage as they won’t be going through the usual down payment process to buy a house. Home inheritance comes to others as a burden with additional family stresses and unexpected expenses.
If you inherited a house in Jacksonville or St. Augustine, read further and see other pros and cons of an inherited home.
Pros of an Inherited home:
- You can boast of homeownership without necessarily waiting for years to save for down payment. The home buying process can be very tough and seem impossible for some people and while they have the chance to own a home, they grab it with both hands. Home inheritance comes with great life changes for those who can afford the expenses.
- The home might be a source of income if you decide to rent it out. A monthly rent check can serve as a stable income, supplementing your current pay or might help to save for retirement. After all, everyone would need a little extra cash. your rental income can enhance your current living condition or would give you the chance in doing some things you have always wanted to do but couldn’t succeed due to short of income. Rental income should help in covering maintenance and other expenses of the home.
- No need to worry about your credit score to get approved for a loan before purchasing a home, you automatically own a home and a credit check won’t be required With an inherited home, you avoid the anxiety of a mortgage approval.
- You escape the tight Jacksonville real estate market. The stress of trying to buy a home won’t be a problem for you.
Cons of Inheriting a house:
- Inheritance tax: Inheriting a home will be an instant responsibility of several property taxes to take care of on monthly basis. The inheritance tax is the greatest fear of most people. You might not be prepared for monthly expenses such as insurance, maintenance, yard works, and others.
- Wrong Neighborhood: A property inheritance will seem like you’re stocked in an unfavorable neighborhood. This is usually in the case where the inherited home will be your only chance of homeownership and you just need to live in it, the neighborhood would likely not be a favorite for you and you’ll feel like you’re stoked to the neighborhood.
- Need Some Budget for Repairs: Inheritance can be a problem when the property in question has several damages and would need some big repair jobs done. You might inherit a home that needs repairs summing up to $100k. That’s a surprising burden for some people and they just can’t handle such expenses.