Investing Capital Before Selling

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently? 

Investments can be confusing. The capital on a property is no different. It’s difficult to know when to buy, when to sell, when to wait and when to move. Particularly when looking at buying a new property at the expense of an existing property, there’s much to consider.

The experts say never sell. But as we all know, life sometimes throws you unexpected curveballs. When is the right time to sell, and how can you maximise your capital when you do?

It’s difficult to accurately estimate the amount of potential capital growth on any property: unfortunately, we can’t see into the future. You can make a fairly educated guess based on the current market trends, however.

When should you sell?

To reduce interest paid on home

Selling an investment property means you can put that money towards the mortgage on your principle place of residence. The longer you take to pay off your mortgage the more interest you pay in the long term, so depositing a lump sum payment at any point can only benefit the cause.

The property is under-performing

This could be in terms of capital growth or renal yield. An investment property is purchased as a means to make a profit, so if it is not doing that, then it may be time to sell. Stay up to date with the market value of similar properties in your area to keep track of the value of your own, if it isn’t growing at the rate you wish, it could be time to think about your next move.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0403) 296-221 or email [email protected]

Thanks,

Tammie