When Is The Right Time To Sell Your Investment Property?

real estate investments

It’s fascinating how there is so much talk on purchasing an investment property, and so less on selling it.

If you’re looking to build a sustainable portfolio, knowing how and when to sell your asset is just as big of a part of your plan as buying one. (Unless, of course, you have seamless fund access.)

Identifying The Signs

Often, to maximize your returns or to align with your refined investment goals, clinging to an owned-property isn’t a sound idea. Here are four signs that you must sell your property and move on to the next chapter:

  1. You’re Disappointed With The Return – You must have done your calculation at the time of purchasing it. And now, if it’s failing to match your expectations by a big margin, clearly it wasn’t one of your best decisions.
  2. Cost Of Maintenance Is High – Many investors often overlook the cost of maintenance when calculating their ROI. The big (and better) the property, the bigger will be this cost. However, if this expense is eating away a large part of your annual returns, it’s certainly the time to sell it.
  3. There’s A Better Alternative Available – If you see a better investment opportunity and this property feels like it’s holding your capital, you should definitely sell it to bank on that better opportunity.
  4. The Economy Is In Shambles – The market will not always remain favorable. If it’s booming, it will take a slide. So, if your market understanding and analysis reads that things are about to go very bad, thinking is not even an option. If purchased with short-term purview, you must sell that property.

Time To Move On

Just like buying, selling isn’t easy. It’s even more difficult given the possible emotional attachment with the property.

But again, if the property doesn’t make sense, it’s important that you get rid of it and tap on other opportunities.

Look around and find one of the property investment companies. And then work along with them to sell that real estate at the right price (and at the right time).