Owning properties could be a very profitable investment. However, without proper management and future plans on the properties you own, you might end up paying more for maintenance. When your property doesn’t bring as much profit it used to, selling your property could be the right answer. Below are several signs suggested by Investor Junkie to find out the best time to sell your property!
When the major components are already at its limit, it’s property selling time
Unlike gold investment, property investment needs constant maintenance. Even with all the money that goes for the maintenance, properties still have its limits. Whether it’s the water pipe, the roof, the wall, such things definitely will cost a lot to replace. Try to calculate whether your annual rental income cash flow could cover the total repair fee. If you think you might be left with almost nothing from the excessive maintenance fee, try to sell it a few years before it actually needs to be replaced.
Don’t miss out the hot offers!
Property selling depends on a lot of factors. Buyers’ preferences or the location of your property could really affect the price of your property. Don’t miss out these timings! Finding the best buyer for your property is not easy. If you find a buyer that looks very interested in your property and is willing to purchase it at a high price, then it might be the time to sell it.
Try to keep your ears open for every news circulating the location of your property too! Obviously, people are more interested in purchasing a property that is strategically located. A specific area might gain popularity when it’s near the transportation centre.
Property investment is different from stock market investment. You may need a longer time until you can profit from your property, as it is much more complex. Keep on paying attention to the market’s direction, the good times to sell (seller’s market), and good times to buy (buyer’s market). Despite the differences, the main strategy is still the same: “buy low, sell high.”
Mind the ownership costs
Other than maintenance fee, you need to remember that property also costs you ownership fee: tax. Keep getting updates on the regulations that control the tax of your property. Also, take notes on the special assessments that you need to pay to your condo or homeowners association. If you can no longer afford to own your property, then selling it would be a wise decision to take. Once your return on the property’s investment starts declining, try to consider selling it and opt for other places with better cash flow and profitability.
Read also: 4 Points Before Buying a Real Estate
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