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Real estate property is an excellent investment and a great source of income. But at times, it can become a dangerous asset to hold, one which may not give you the ROI you desire.
Luckily, property always shows certain signs which tell owners that the time to sell is near.
5 signs that indicate your real estate property is ripe for sale
- When you spend more on your property than you earn from it
Property maintenance can be a costly affair. While your real estate is earning you rent, it may be that you’re spending a little too much on its upkeep. The point of an investment property is to make profits. But, if you spend all that you earn out of the property and more on maintenance, it defeats the purpose of the real estate.Selling it would be the best option.
- When you’ve put all your eggs in a single basket
Having a diverse portfolio of investments is extremely important to ensure you don’t lose all that you’ve saved due to any fluctuations in the market. Assets like shares, bonds, and debentures can change value very quickly, whereas, property (especially land) always appreciates.If you have a property to your name, you can consider selling it to diversify your portfolio.
- When the seeds of a large property market are sownLet’s say a new string of apartment complexes will be built in the country in the next 5 years. This means, in the next 5 years, the market will be flooded with homes for sale. Sellers will drive down prices to sell their property and buyers still may not purchase purely because they have no dearth of options.If this is the case, it’s best to sell the property when you know there is a shortage of supply. This will help you make wonderful earnings.
- When you find yourself in need of finances
Do you have only a single source of income? Are you worried that your source of income isn’t going to help you towards a better life? If yes, then selling the property you own can be a great way to cushion yourself from harm and debt.
- When tax laws are revised
In New Zealand, mortgage interests are tax deductible for investment properties. So are costs incurred for any maintenance work that landlords carry-out when the property is occupied by tenants. This is why some buyers may decide to purchase a property for investment, rent it, out and get tax deductibles when tax laws change in favor of property.
If arbitrage is an option or if you are experiencing any of the above situations, then selling your property is a great way to make the best out of the situation.
At Total Mortgages, we can advise you on the best time to sell your property. Our professional mortgage brokers can also help your buyers find suitable home financing options through our friendly-loans.