Considering selling your investment property?
If you are planning on cashing out and selling, it’s important that you ask yourself some important questions…
#1: Is The Property “Investment Grade”?
If the property isn’t making you any money, then you should probably sell to avoid missing out on greater opportunities.
But before you do, take a moment and ask yourself these questions:
- Has the property grown in value over the last few years?
- Is the property likely to outperform the averages in the long term?
- Is there a way to improve the property to generate a better return on investment?
- Would I purchase this property again?
The answers to these questions should ensure that your portfolio is a top performer.
Keep in mind though… even if the property hasn’t grown in value, doesn’t always mean that it is a dud.
The market can also have a significant influence on the value of your property, so make sure you factor that into your decision making.
#2: Are you driven by fear?
With so many markets in transition across the country, fear is starting to take a hold of some investors.
People are selling because they “don’t want to lose any more money” on their investment property.
This, coupled with alarmist headlines predicting a property crash, are causing many investors to cut and run without thinking.
What these investors don’t understand is that the market is finally correcting itself after years of running at full-steam.
Which is why smart investors aren’t taking notice of the property doom and gloom. They’re keeping their long term strategy in place, despite these short term movements in the market.
The reality – property is a long term investment and you need to be considering it logically, not emotionally.
#3: Is it the right time to sell?
The answer to this question is what holds a lot of investors back from selling their properties.
Many investors would tell you that now is probably not “the right time to sell”, given the short term changes in some of our markets.
Having said that, if your property investment is a dud, what’s your alternative?
You could wait for the property market to move up, but is somebody really going to pay more for your dud property?
And while that’s happening, the investment grade property you want to buy is also increasing in value.
So while timing the market might seem like a logical choice, it makes no sense.
The best thing you can do is run the numbers on your investment property, and then decide if it’s worth selling now.
Talk to the Experts
Asked all these questions, and still think that it’s the right time to sell? Set up an appointment to talk to the property experts at Adpen to execute your exit strategy with ease.