What to weigh up before you sell
Sometimes making the decision to sell a property is easy – it no longer serves your purposes, you’re moving interstate, your lifestyle or needs have changed, or perhaps you’ve simply outgrown it.
But on other occasions, deciding whether or not to sell might require a little more consideration. Perhaps it could serve as an investment property, or maybe it could be renovated to suit your needs.
With that in mind, here’s what to weigh up before you sell.
What purpose does it serve?
Selling a property is both an emotional and a financial decision and it’s important to consider what purpose that property serves in your life.
This is especially critical as you progress through life’s different stages. For example, the property that suited you as a couple might not serve the needs of a young family, or the family home you have owned for a while, might not accommodate your requirements once your children have left the nest.
Each of these might raise the question of whether you should sell your existing property in order to progress to the next stage.
What are your financial aims?
As we mentioned, property is one part emotion, one part financial commitment, and the reality is many Australians have increased their net worth through property ownership.
For some that has involved creating a portfolio of investment properties. But if selling has crossed your mind, it’s important to consider whether a property continues to meet your financial aims.
Those aims might include negative gearing, capital gain or additional income from rent, and each of these could be affected by changed personal circumstances, changed employment status or perhaps even an interest rate rise.
If a property no longer serves a financial purpose it could be a key time to sell.
Might you need it in the future?
Sometimes a career move might prompt you to consider selling, and in this case it’s worth weighing up whether or not to retain the property as a rental in case you return to that location in the future.
This then has to be considered against other factors like your financial position, whether you can afford to hold that property or whether doing so might prohibit you from buying in your new location.
Will you get what it’s worth?
In recent years Australians have enjoyed incredible price gains in the property market, but everything works in cycles and occasionally you may need to hold a property longer to ensure you get a good return.
If that return is something you’re weighing up, speak with a trusted agent to see what trends they’re observing in your area, and find out what they would suggest.
Are you emotionally ready?
The emotional element of property ownership shouldn’t be overlooked. Where possible you need to be emotionally ready to sell, rather than prompted into a knee jerk move.
In some instances that might see you retain the property and renovate it or extend it, but in other cases that might not be feasible and selling is the only option.
If you’re struggling with the emotions of selling, we have some tips for how to handle that here.
Looking to buy or sell?
If you’re considering buying or selling a property, why not chat with one of our friendly Eview agents on 1300 438 439?
You can also view our list of currently available properties here.
