Being the owner of a handful of properties could really be a promising investment. However, this can only happen if you do it right. To some people, it might not even be the right type of investment to do. The only way to escape from suffering from property investment’s loss is by selling them. Here are more signs that Investor Junkie suggested to know whether or not it might be time for you to sell your properties!
Being a landlord is getting tiring for you
There’s a lot of responsibilities that a landlord should take. Over time, some landlords confessed to slowly lose the joy of collecting the rental checks. The routines have instead turned into hassles. The point is, being a landlord is not an easy job. Once you’ve lost the interest in taking care of your property, then selling it is an option.
Maintenance and renovations are burdening you? maybe it’s time for property selling
One of the cons of owning properties is maintenance and renovations. Property maintenance and renovations also often cost a lot, and sometimes comes unpredictably. One example that Investor Junkie mentioned is when your ten years tenant finally decided to move out for your house. You will need to prep the house again for the new tenants. In such situation, selling your property to another investor in an “as is” condition is an option that you can take.
Selling your properties to change into other investment holdings
Real estate is not a cheap asset. If you want to maintain a diversified investment portfolio, you will need to have more than enough fund. Meanwhile, it is a common situation for investors to invest in the same asset type when their holdings appreciate in value. As a result, they usually end up with an unbalanced investment portfolio. To avoid this, consider selling your property to invest the money into a different asset class. If you are still interested in real estate, try to diversify your holdings within real estate.
Your property does not bring you any profit
This is probably an obvious reason. Your property could result in a ballooning maintenance fee, and the rental income could not cover it. Even worse, your cash flow ends up in the negative due to your property. At times like this, accept that your property investment might not work out and sell it.
Upon selling your property, make sure to find out tax-loss harvesting. This could help you cut the overall income tax and losses on the flopped investment.
Read also: Property Selling: 7 Signs to Note (Part 1)
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