Is it time to sell your investment property?
Owning an investment property can be a great way to build wealth and enjoy an extra income stream. But like any investment there could come a time when owning that asset is no longer as attractive or viable as it once was.
So how do you know when that time has come to sell your investment property? Here are four key signs you might be ready to sell…
Your situation has changed
Whether it’s your financial situation or your personal circumstances, sometimes a change in your situation dictates it’s time to sell an asset.
Maybe you need the capital for another property that you will live in, or perhaps you’re looking to consolidate your finances and invest in something else.
Maybe you’re looking to retire, and the sale of the property will fund long anticipated travel around the world. Whatever the reason, new chapters and circumstances might be a key indicator it’s time to sell.
The market is dropping
In real estate timing is everything, and perhaps after years of capital growth and enjoying the rental income, owning that investment has simply run its course.
This might be the case if the market appears to be dropping, either in terms of rental return or house prices.
In this instance, it’s worth touching base with your trusted agent to ascertain the state of play and see what they’d suggest.
It’s costing you too much
When it comes to owning an investment property, there are incomings and outgoings, but if the property is simply costing you too much, it could be time to let it go.
Outgoings for rental properties include borrowing costs, interest on any loan, council rates, repairs and maintenance, property management fees and more.
All investments should serve a purpose, and with a rental property this purpose might range from capital growth to rental income or tax minimisation.
But if owning it no longer makes financial sense, it’s worth considering selling.
It’s getting too hard
In order to retain its value and generate a return, an investment property needs to be properly managed and looked after.
This includes routine maintenance and repairs, regular inspections, and meeting the legal obligations that come with owning a rental property.
If that’s beginning to feel too hard, it might be worth evaluating whether now is the time to sell.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
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