What a crazy year the property market saw in 2015, while some areas such as Sydney, and Melbourne were seeing crazy growth, others were plotting along and mining areas were crashing now the mining boom has fizzled. Plus the government enforced new lending policy which saw a majority of investors loan repayments go up by almost .3%! I can see why some investors might be considering pulling out of the market. So what does 2016 have in store? Of course we can’t be general about property as each town or suburb is different to the one next to it, we can though talk about reasons you’d sell.
Is your property old, due for a lot of maintenance and just well, worn out? Before going down the road of renovating, maybe this is the time you consider whether this property is still working for you? Do you want to be an investor or a renovator? I’d say you didn’t get into investing to do the latter, so this could be an out.
Or, maybe you’ve paid so much off the property loan that this property is becoming a tax problem from TOO much income. Crazy problem to have isn’t it? So maybe this is when you consider selling it to pay off non-tax deductible debt such as a family home loan.
Or, maybe this property is just straight up not performing as you expected it to, this might be true if you bought in the mining boom at a crazy value and getting even crazier yields, now this could of dropped out and this property is costing you big time. You might have to bite the bullet and take a loss on this one, after proper advice of course.
Or, you could be consolidating your portfolio, it is hard work to manage so many properties, consolidation clears some debt and some work. Keeping your high performing properties and clearing out the dead stock.
There is many more reasons why you would sell, but it all comes down to your goals in the first place, never act of emotion alone, this is how investors get burnt.Share