Wondering whether to sell an investment? How do you decide?
Assess your goals
Most importantly, is the investment meeting your current financial goals? Would selling it get you closer to meeting those goals? These questions sound easy, but in practice can be complicated to answer.
What do you need the money for?
Would selling the investment free up money so you can make even more money? Are you selling for retirement? Or to pay off debts?
Is now the right time?
This will depend on your financial situation and goals. It will also depend on where your property is. Prices in some capital cities are still rising – you may be better waiting for a while if you have the time. Other markets have peaked or are well into a downturn. Most will rebound, but some may not.
Is the investment a burden?
Is there anything you can do to reduce the workload or stress? For example, would a new property manager help?
Would you buy this property again?
This is a good litmus test. If you started again today, would you buy this property? If the answer is no, it may be time to sell. If the answer is yes, you may have a keeper. If you’re not sure, come and talk to us – we can talk you through how well the property (or the sale of the property) meets your needs.