Selling Investment Properties in the Current Market.

There is indication that some investors are progressively offloading properties as mixed messages in the media promote word of the market reaching a potential peak and, speculates that the market could see a downturn in the near future.??

To be clear, the likelihood of the major family market in Queensland slowing substantially is unlikely.?Housing?shortages combined with the need for more supply as well as the ratio of homes to population in that market sector is too favourable to see a reversal in prices.?Historically, this sector of the Australian market has only ever experienced growth, albeit usually at a slower rate than we’ve seen recently. .?This is somewhat different in the high end, luxury property sector and in the low value properties, which do experience more fluctuation.?In the current environment however, all sectors are still performing very strongly.

Understandably, a portion of investors are seeking to cash in on the incredible prices resulting from our incredibly hot market to secure their profits as the prices are forecast to stabilise towards the end of 2022.?This is understandable, however poses the risk of difficulties re-investing if the markets continue to rise against the forecasts. ?Sydney and Melbourne markets have flattened in the past week, but whether this will be sustained is yet to be seen.?The influx of people migrating from southern states to Queensland means that things are still rising steadily locally, with over 30% increase in values over the past year.

If you are an investor and would like to sell your stock, there are many factors to consider when selling investment properties right now:

·??????The movements of the market are unknown. The market is more unpredictable than it has been in recent years. The trend in this snapshot in time is still that property is rising, and of course, this could change.

·??????Transaction costs on investments are high, scrutinise the costs of exiting.?Despite huge growth, if you are selling out of a long-term strategy early, it may not result in the profit you have expected. ?Duties and capital-gains tax may take a big chunk, and you will lose the regular rental income returns.

·??????Returning to the market - you may be benefitting from recent boosts in prices, but if you plan on re-entry on the notion that property prices could drop, you may risk being priced out of re-entry, unless you are banking on luxury or low-end property markets.

·??????If you are holding less desirable property stock - this is an excellent opportunity to flip them right now as low stock ensures an easier sale and it will be beneficial to act before more stock releases to the market.

·??????You will want to be assured of selling for your optimal price - a good agent that will work for you is essential.

·??????The market is still very hot, you are almost guaranteed a sale if you enlist a savvy real estate agent and advisor.

If you would like to discuss your current investment portfolio and how to best capitalise on its value, call me for an obligation free conversation.

Ryan Barabas of Elever Property Group is a leading professional in the Brisbane Property Market. For assistance with any matters regarding your property, do not hesitate to contact Ryan on 0439 715 742.?