Selling your investment property
The time may come when you decide to sell your rental property. That’s when it’s worth knowing what’s involved, and how to maximise the gains on your investment.
For some investors, the opportunity to make a quick profit can be the main reason to sell. In a process known as ‘flipping’, buyers may pick up an older property, renovate it, and get the place back onto the market as soon as possible. It’s a strategy that can work though it often relies on good timing. It can be a lot harder to make a fast profit if the market slows.
No matter why you are selling, it makes sense to spruce up a property before the open inspections kick off. This can be as easy as organising a thorough clean up, or undertaking simple improvements that can improve the property’s appeal and market value.
Speaking with a few local real estate agents can give you an idea of those improvements likely to add value at sale time. The trick is to avoid overcapitalising. That’s where you spend more on renovations than they add to the property’s value.
A selling agent can also explain the health of the local market, something that can influence the timing of your decision to sell.
It’s worth noting that any profit you make on the sale of an investment property can attract capital gains tax. On the plus side, there are ways to minimise the tax you pay. In particular, if you own the place for at least 12 months, you could enjoy valuable tax breaks.
Just like buying an investment property, the decision to sell should be made carefully. Weigh up the pros and cons, and be sure it’s the right move to help you achieve your personal goals.
In this chapter
Take the next step to buying your first home.
Property has a proven track record for delivering strong long term gains and there’s plenty you can do to give your returns an uptick ...
One of the great aspects of an investment property is that it can rise in value over time to give you a capital gain.
People sell their investment property for all sorts of reasons. So how do you work out when’s the best time to sell?
What you need to know about the property valuation process. Property valuations are a key part of ...
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