When to Sell Your Investment Property
harkins / October 10, 2018
Determining when to sell your investment property is a challenge considering how often the real estate market changes. However, there are investing tips that can help you make this determination. A myriad of reasons could be leading you to this decision, but you must ensure it’s the right one before selling. For example, if you’re feeling pressure from a broker to sell because they’re claiming now is the “perfect” time, then you’re not making the correct decision. There’s no such thing as the perfect time to sell regarding the real estate marking, so we’re going to look at some practical reasons to know when to sell your investment property.
The Property is Producing Negative Cash Flow
If your investment property is not performing well or you do not see the return on the investment you expected, this could be occurring for many of reasons. If this is the situation you’re facing whereby you’re not breaking even, or you’re producing negative cash flow, not may the right time to sell.
Too Much Maintenance is Needed for the Property
You may be facing too much maintenance, and this may be leading you to the decision about selling your property. Your choice could be based on both how much time you’re spending, as well as how much money you’re investing. For example, you may be spending more money than you anticipated on repairs following rentals or as the property has aged.
Personal Investment Changes
There may be things occurring throughout your life you have no control over including retirement, divorce, death, career changes, relocation, or other events that may lead to selling your investment property. Look at the personal changes occurring in your life and weigh them carefully in comparison to how they’ll impact your investment and make your decision accordingly.
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