How can you determine the best time to buy or sell properties in your portfolio?

1 Market conditions

The first factor to consider is the market conditions of the locations where your properties are located. You need to monitor the supply and demand, the vacancy and occupancy rates, the rental and sales prices, and the economic and demographic trends of each market. You also need to compare your properties with the competition and identify any gaps or opportunities. By analyzing the market conditions, you can assess the current and future value of your properties and decide whether to buy or sell based on your objectives and expectations.

4 Risk appetite

The fourth factor to consider is your risk appetite for buying or selling properties. You need to evaluate the potential risks and uncertainties associated with each property, such as market volatility, tenant turnover, regulatory changes, environmental issues, or legal disputes. You also need to consider the impact of buying or selling properties on your portfolio's risk profile, diversification, and resilience. By assessing the risk appetite, you can balance the trade-offs between risk and return and decide whether to buy or sell based on your tolerance and preference.

5 Timing strategy

The fifth factor to consider is your timing strategy for buying or selling properties. You need to decide whether to follow a cyclical, counter-cyclical, or opportunistic approach. A cyclical approach means buying or selling properties in sync with the market cycles, such as buying when prices are low and selling when prices are high. A counter-cyclical approach means buying or selling properties against the market cycles, such as buying when prices are high and selling when prices are low. An opportunistic approach means buying or selling properties based on specific opportunities, such as buying distressed properties or selling overvalued properties. By choosing a timing strategy, you can optimize your returns and minimize your losses and decide whether to buy or sell based on your market outlook and competitive advantage.

6 Stakeholder input

The sixth factor to consider is the input of your stakeholders for buying or selling properties. You need to communicate and collaborate with your internal and external stakeholders, such as your senior management, board of directors, shareholders, employees, tenants, brokers, lenders, appraisers, consultants, and regulators. You also need to solicit and incorporate their feedback, opinions, and expectations into your decision-making process. By engaging your stakeholders, you can enhance your transparency, accountability, and credibility and decide whether to buy or sell based on your consensus and alignment.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?