Melton Is it the right time to sell your investment property?
Knowing whether to sell your investment property or hold onto it for longer is an age-old question.
Nearly every property investor asks themselves at one point or another if its a good time to sell, but the right thing to do will come down to your individual circumstances and overall investment goals.
There are some questions you can ask yourself that will help you better understand if selling your investment is the right thing to do.
Questions to ponder include:
Is the property earning you an income?
Does your property earn you an income after taking into account all holding costs and associated fees?
If your property is positively geared and earning any kind of income then you might miss this monetary boost if you decide to sell.
Over time your property could end up making you even more money too, so this is definitely something to keep in mind as you might miss having this stream of income if you sell.
Has the property gone up in value?
Most people hope to sell their properties when the market is at the top of the property cycle, but it can be hard to pinpoint when this happens.
Nobody has a crystal ball telling us exactly when prices are likely to go up or down, all you can do is make an educated guess based on the available evidence, with luck playing a role as well.
But if your property has gone up in price in recent years and you feel confident that it’s not going to go up significantly in the near future then you might make the decision to sell up and move on.
This could free you up to make a better investment elsewhere.
Is the property a money pit?
If your property is becoming a financial burden and you don’t feel like its value is going to go anywhere fast then you might consider cutting your losses before you losing more.
This will not only free up your finances if you want to purchase other investments, but it may also ease your mental load.
Keep in mind however that it can take a while for an investment property to pay off financially, so do your research and due diligence to make sure it’s the best move for you.
A lot of investors live by the adage “buy and never sell” but while this strategy can pay off well for some, others do equally as well by knowing that it’s the right time for them to get out.
If you would like to discuss your property and find out what’s happening in your local market then contact your local real estate Professional.
