5 Reasons to sell your Perth investment property

5 Reasons to sell your Perth investment property

Astute property investors should from time to time valuate their property investments, considering whether their best option is to sell or retain their investment. Here are 5 simple reasons why selling your investment property makes sense.

1) Maximised profits
The real estate market operates in cycles, and selling at the right time can make a huge difference. If local real estate prices are flat or likely to decrease it may be the right time to sell your investment property and use the funds to sweeten your lifestyle, or to find a new investment that better suits your requirements.

2) Find another investment opportunity
Selling an investment property will free up cash to purchase another investment. Perhaps the area that you bought into has reached, or is close to reaching, its potential and it is better to buy a property in an up-and-coming area. Some investors use this strategy very effectively, generating a profit through local capital growth.

3) Expenses
Property management fees and repairs to investment properties, such as leaky roofs or replacing broken hot water systems, all have an impact on your cash flow. Some investment properties require more attention than others and there comes a point where it is better to sell your investment and get rid of the headache.

4) Depreciation
Not only does the property cost money to maintain, the building also depreciates in value. The value that you can offset at the end of the year is higher for new properties than older properties. If your investment property is near to, or has already reached the end of the depreciation schedule, you may be better off selling the property and acquiring a new investment that has a stronger depreciation value.

The saying ‘buy low, sell high’ is very true and history has shown that properties are a good investment over a long period of time. However, at some point the time to cash in arrives. Knowing when to sell and why to sell is very important and is much easier if the benchmark is set at the beginning when the investment is purchased.

5) Taxation – selling before the end of financial year
If you need to sell this financial year for taxation purposes, ensure you list your property for sale with plenty of time. The important date is the date an offer is accepted, so you don’t want to list your property too close to June in case the property doesn’t sell straight away.

If you believe now may be a good time to say goodbye to your Perth investment property, feel free to contact me on 0466 725 866 to discuss your situation.

Note: Readers should always seek their own independent advice prior to making any decisions regarding property or finances

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