While many investors are in for the long-haul, there are often situations where you’ve landed yourself a lemon or there are better opportunities elsewhere.
But how do you know when it’s time to sell, or whether you should be riding out the potential loss in the hopes of it smoothing out in the long-term?
For investors who have bought on the low of the property clock, and have seen significant rises, it may be time to sell up.
“Eighty per cent of the market buys when the market is more than halfway through expansion, which is when I would sell rather than buy,” says Positive Real Estate’s CEO Sam Saggers.
“You can make money no matter what the market is doing, but investors will always make more by running counter to the cycle,” he explains.
Those who haven’t seen growth may need to consider how their property is currently performing in their portfolio.
In a nutshell, if you are more likely to get a better return elsewhere (when weighing up selling and buying costs), it may be time to do just that.
Effective selling takes a seven-question system, says Mr Saggers:
• What are you going to sell?
• Who are you targeting to sell it to?
• Who will do the selling?
• How will the selling be done?
• Who will provide after sales service?
• What are the terms and conditions of the sale?
• How much will the sale cost and deliver?
Investors must always be considering the role the property is playing in their portfolio and the potential results on selling.
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