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When Should You Sell an Investment Property?

There is an old saying in real estate circles that you should buy and never sell.

While that sounds good in theory, it’s not a sound strategy in practice.

Firstly, most investors will consolidate their portfolios at some point in their journeys to pay down their loans and start living more financially free lives.

There is not much point doing all that hard work if you don’t get to enjoy after all!

However, the main issue with this concept is that savvy investors are not afraid to offload underperforming assets.

That’s because they don’t want to miss out on opportunities elsewhere and research shows that future growth in their location might take a long while to arrive.

So, here are three times when you should consider selling an investment property.

1. FOMO

Many investors wait too long to sell their property because of a recent boom-like market cycle.

In essence, they have FOMO or Fear Of Missing Out.

Perhaps the market has experienced strong growth for a year or two, but they fear that if they sell now, they will miss out on any future growth.

Savvy investors know the signs of market peaking and choose that moment to sell their properties so they can maximise their profits to invest elsewhere.

Unsophisticated investors, on the other hand, leave it too late and end up with a property that starts to go backwards in value – Gladstone in Queensland is a good example of this over the past decade.

Investors who sold at the peak of that market made solid returns, whereas those who had FOMO are now stuck with a property that is worth far less than they paid for it.

2. The Waiting Game

Far too many investors get stuck in a growth waiting game.

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