The 4 Reasons Why You Should Consider Selling your Investment Property

by Mint Real Estate Claremont

“Buy and Never Sell.”

It’s a mantra that many real estate investors follow today.

But the reality is that our lives are constantly changing. Sometimes, offloading an investment property may be the right decision for an individual to make at a particular time, and in particular circumstances.

In this article, we help you know when the best time is to sell.

 

Why Sell?

Some of the main reasons an investor may choose to offload an investment property can include:

  1. Reduce interest paid on your principal place of residence

If, like most Australians, you’ve taken on a mortgage to buy your family home, you’ll be paying a hefty amount of interest over the course of the loan. The typical 30-year mortgage will see you paying double the cost of the home in principal + interest repayments. Bearing in mind you don’t receive tax deductions from your principal place of residence, paying down the mortgage on your family home could save you many thousands of dollars over the long-term.

  1. The property is under-performing

Acquiring an investment property will tie up a significant amount of your wealth. Some properties simply don’t perform strongly, so the return on your investment isn’t what it should be. Even with strong market conditions, individual properties may suffer due to specific problems with either the property or the location.

  1. Investing in other assets

You may have a business you wish to expand. Or you may see potential for investing in other asset classes. Alternatively, you may believe property in a different location is likely to perform more strongly over coming years. These are all valid reasons to sell an investment property, so you can use the capital for other investment strategies.

  1. Debt retirement

Carrying too much debt can be stressful. Ensuring you have the income to keep up with interest repayments may be causing you to lose sleep. Financial anxiety is a real problem, and you may feel that achieving peace of mind is a higher priority. Selling an investment property to retire debt is one way to handle this situation.

Whatever the reason, if you’re considering selling an investment property, Mint Real Estate is perfectly positioned to help you meet your real estate goals.

The Perth Investment Market

The current Perth market is seeing a significant tightening of vacancy rates when it comes to rentals.

 

 

 

 

 

 

 

 

 

 

 

The latest monthly statistics clearly show the downward trend. Vacancy rates for residential properties in Perth dropped to a low of 3.3% in October. That figure is down from 3.6% in September, having dropped from 4.4% a year earlier.

This is driving renewed interest in Perth from investors across the country.

With east coast real estate markets stagnating or going backwards, investors are attracted by stronger rental yields in the west. As Perth’s rental stock levels are beginning to slide, leasing times are shortening, resulting in the vacancy rate sinking to its lowest level in over four years.

Some of the strongest performing Perth suburbs during the September 2018 quarter include:

  • City Beach – rents up 25.9% to $850 per week
  • Gwelup – rents up 24.5% to $623 per week
  • Cottesloe – rents up 23.5% to $605 per week

How Mint Real Estate Can Help You

These top performing suburbs are all areas where Mint Real Estate has a strong ground presence. As an agency with a constantly expanding portfolio of real estate in Perth’s best performing suburbs, buyers from across the nation regularly come to us to find the right investment properties.

Our ability to connect investors with suitable properties in the Perth market, makes us the ideal partner for anyone looking to sell an investment property. We have the capacity to bring many interested buyers to the table, so you’ll be in a position to sell for a strong price in the shortest time possible.

Please give us a call on 08 9284 6000,  or fill out a contact form to contact our team.

We look forward to working with you.

 

 

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The 4 Reasons Why You Should Consider Selling your Investment Property