When considering buying an investment property, the intention is often investing in the future. So, when should one cash in on their investment to fund their future?
The key consideration is your financial position. You may have good income from other sources but you don’t have the cash you need.
This money can be used for other ventures and improvements, such as:
- To give you more time off work to spend with your kids
- Renovate your home, landscape your garden or install a pool
- Fund professional development
- Launch the small business you have been dreaming of
- Improve your health and wellness
You may be in your retirement years and need the cash for that overseas trip or changing the car. OR you may have good assets but insufficient income to cover you in your retirement years. If you sell, what are your investment plans for the sale proceeds?
Do you clearly understand the net income return that the property is currently generating? The amount of rent is an important consideration, but sometimes mortgage costs (if there is still debt on the property), ongoing fees, such as Body Corporate fees, rates and taxes can reduce the net income to a modest or low rate of return on the investment.
Even if the property has not increased in value by as much as you had hoped in the time you have owned it, the joy that may come from freeing up related yearly expenses might just help you to invest in your future!
These changes can sometimes be quite complicated and it is important to seek professional advice from someone who understands your goals and values and the best way to achieve the right outcome for you.
When you do decide to sell, we are here to help you with your next journey and make the transition as seamless as possible.