When To Sell An Investment Property

Property Investors know how to buy rental properties.  It’s a process they’re comfortable with and they obviously enjoy it.

Selling an investment property however, is considered a more...

...challenging and fraught task for Investors. An Investor arrives at the ‘to sell’ decision based on the positive impact a sale will have on their existing property portfolio and their family. It may mean a significant goal is finally going to be achieved. 

However, the decision to sell, or not to sell, can create an internal battle and be ‘mulled over’ for weeks, months and sometimes years. 

The decision to sell is therefore not taken lightly by Investors and the decision to consider selling an investment property is usually motivated by an event that has occurred, or a plan that is underway for the near future. 

Here are some questions an Investor will ask before arriving at a decision:

  • Where are we at in the property cycle?
  • Are properties selling at or above their valuation?
  • Accordingly, where does the market see the value of our property?
  • What do we need to do to meet the market and get the best possible price?
  • How will doing so impact upon the gearing ratios of my portfolio, plus our overall lending and financial position? 
  • Will it achieve the goals that we are after, i.e. reducing risks, spreading our investments, retiring debt, improving cash-flow, retirement, travel, leisure?

No doubt there will be other questions that are personal to you which need your consideration. However, to get many of these answered you can communicate with your professional networks, like John May who specialises in investment property sales. These are resources who can assist you with answers to many of these questions and that in turn will enable you to make a more informed decision. 

 

So, when is the right time to sell?  

The property market is closely linked to the state of the country’s economy, therefore the Investor needs to understand at a high level how the economy is performing. Are interest rates likely to go up or down; and if so, how will that impact on the value of my rental property in coming months or years?  

Timing also includes the impact a property sale will have on the Investor’s lifestyle and family. You only live once; and this is the part that is very much in the hands of the Investor - turning your dreams into reality. 

Both the controlled and uncontrolled ‘timing’ components need to work for the Investor to arrive at a ‘sell’ decision.  

The good news is, John May can let you know what’s going on in the property market, provide you with a free appraisal for your property and guide you through the process. Call him on 021 980-770 for a chat.

 

 

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