Deciding whether to sell investment property is an important and difficult decision to make.
Timing is everything in real estate. Selling too early or too late could cause you to lose capital or miss opportunities to make new investments. The following scenarios are good indicators that it may be time to let one or more of your properties go.
You want to optimize your portfolio
Having a plan for long-term asset and facilities optimization is a good way to make sure you are only holding onto lucrative investments. Selling an underperforming property helps you to restructure, consolidate and liberate funding for future projects. Waiting too long for the ideal time to sell can cost you money in the long run.
You seek new opportunities
Perhaps market interest has shifted away from your current holdings, or you want to free up funds for a new venture. If a property no longer yields good returns, then you may wish to purchase something better for your bottom line. New opportunities present themselves every day, and depending on the level of risk you are comfortable taking, you may wish to ditch your aging rental properties for alternative real estate assets.
You are ready to retire
One of the most common reasons investors sell is to free up capital for retirement. Eliminating maintenance costs and selling property can produce the funds you need to relax and enjoy your autumn years.
Before making major financial decisions, you should understand the implications on your portfolio as well as your future as an investor.