The loss of a loved one is very devastating and might take some time to recover from. If you lived with the deceased, the house you lived in holds a lot of memories. Getting rid of it might be very tough or you might decide against getting rid of it altogether.
If the loved one owned the house and left it to you in their will, you must step up. It is time to decide what you are going to do about it.
Inasmuch as being the heir to the house seems like an incidental step, it is important that you avoid getting carried away. As a new home owner, you must take control of what happens next.
So what should you know and contemplate concerning your new ownership status? Below are some of the key considerations that you can make.
a) Are there taxes and tax breaks involved?
Florida did away with inheritance tax in 2005. This essentially means that as a beneficiary, you don’t have to pay tax for the transfer of the estate in Miami.
Aa prospective home inheritor you may have to pay Federal Estate tax. This is imposed all across the US. The rider in this tax is that only people that have inherited a house valued at $5 million USD and above have to pay this tax.
In addition, homeowners are precluded from paying Capital Gains tax while inheriting the house. This is because the house has ‘stepped’ in value. Stepped means that the value of the home increases and the house is obtained tax free.
However, should you sell the house you inherited, you may be liable to pay some taxes.
b) Are you ready to incur the expenses that come with running a house?
As was highlighted above, inheriting a house is seen by many as a very lucky thing. However, the real work begins when you have to run it and maintain it.
Responsible property owners must keep up any mortgage payments for the house. Insurance and utilities must be paid on time lest you find yourself overwhelmed and unable to bear the cost of living in the house.
Therefore, you must ask yourself if you can afford your inherited house or not. Can your current paycheck handle the stresses of new homeownership?
If not, you can sell your house in Miami quickly by listing it on the market and waiting for the offers or contacting a professional home buyer like us. In this regard you can opt to either sell it alone or hire a real estate agent to sell the house in Miami.
c) Are you ready to rent it out?
A new house that you are not currently occupying may seem like a money making opportunity. Most people will opt to rent out the house to supplement their income.
However, renting out property is not a walk in the park. It requires vetting and selecting the correct tenant. You may also need to fix up the property and perform certain repairs and maintenance before it’s ready for a tenant. Nonetheless, it could be a great extra income property if you are ready to manage it. Alternatively, you could hire a property management company and pay them a percentage of the monthly rent.
These are the three essential questions that you must ask yourself when you inherit a house in Miami.