We are often asked “When is the best time to sell investment property?” There is no answer that works in every situation here. What we can tell you is that Perth is a very nice market for investing and that every situation is different. However, we would still like to present three situations in which it is wise to sell.
Cashing in for Retirement
When you are still in the workforce, you are trying to make enough money to invest in a way that it creates capital growth. When you are retired, though, the money you have amassed is supposed to generate income to support your preferred lifestyle. Often, this can involve selling properties and putting the proceeds directly into your superannuation account or paying off other debt so that your rental incomes can fund your lifestyle.
If you are retiring, you will want to investigate all of your accounting options to ensure that a sale is made at the most tax-effective timing.
Underperforming Property
We believe that investing in property, especially in the Perth market, is the best way to secure your future. We teach a system for property investing that has helped a lot of people amass impressive portfolios.
But sometimes, no matter how great of an investor you are or how “perfect” a property looks when you buy it, it underperforms. Conditions in a neighbourhood, suburb or market can often change overnight by circumstances beyond your control. If a property is below the median growth for its area two years in a row, you may want to unload it and look for something that is going to give you higher returns. Way up the cost of changeover with the opportunity of having your money invested elsewhere.
Lifestyle-Driven Sales
The entire point of property investing is to make enough money to provide you with the lifestyle you want. Sometimes, your idea of a preferred lifestyle changes or evolves. For example, you may have enough equity in an investment property to buy a vacation home outright. Or in order to afford to upgrade your home, you need a bigger deposit so that you are not taking on as much personal non-deductible debt.
Whatever the case is, whatever your “drivers” are, you want property investing to enhance your lifestyle, not detract from it. That’s why it’s important to have a great property investment team on your side. For the best property investment and management team in Perth, call 1300 472 427 today.
