The game of property investing is one that requires diligence, patience, and strategic planning, especially if you want to be good at it. While most people agonise over the best time to buy their investment properties, what about when it comes time to sell?
The moment you choose to sell your property can make or break the value of your investment, so you should take just as much time to consider selling than you did when you were buying.
The following are some suggestions that will help you decide when the best time is to sell your property:
1. When the Return on Investment Plateaus
If you are starting to feel like you’ve made as much money as you can from your investment, then it’s a good time to sell. You definitely don’t want to overshoot and waste time on a property that will only start depreciating if you wait any longer, especially when you could be off starting on a new investment. So if you have already made a tidy profit, then get out while you’re still ahead. That being said, you should always be on the lookout for changes in the real estate market before you sell, because there is always the threat of recessions coming in, intent on ruining your plan.
2. If You Find Something Way Better
Sometimes, the right time to sell has little to do with the property you own and what the markets are doing. If you come across a different investment opportunity that is guaranteed to make you a quick and sizeable profit, then it may just benefit you to cut and run from your existing investment. Of course, if this means you will lose a solid money-maker in the process, then you will want to hold tight for now. Basically, do your research and weigh the pros and cons before you make any big choices, but always follow the most obvious money.
3. You Need Some Cash
If you come to a point where you would simply rather have the cash in hand than have it tied up in property, then you may want to consider selling. Since the whole point of investing is to end up with more cash than you started with, you might as well take it now if you need it.
4. Your Goals Change
There may come a time when your goals and priorities for your savings change, and you no longer have room in your life for your property. For example, if there is a tragedy in the family and you need liquid assets, or you would rather use your money to start up a business, then selling your property might be a good move.
5. You’re Ready to Retire
If you’re ready to retire, and already packing your things and calling the removalists, then you will also need to start thinking about selling the property you currently live in. Nothing changes the game more than retirement, and when you’re ready to begin the next stage of your life in your retirement home, then now is as good a time as any to sell your ex-primary residence.
There are a lot of factors to consider before selling your property, but it should always come down to what will suit your life the best – in addition to what the markets are doing, of course.