Make the most of your investment property’s sale
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 any gains.
The chance to make a quick profit may be a reason to sell. In a process known as ‘flipping’, where buyers pick up an older property, renovate it and get the place back onto the market as soon as possible. It’s a strategy that relies on good timing. Because it could be challenging to make a quick profit if the market slows .
No matter why you decide to sell, 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 could improve the property’s appeal and market value.
Speak to a few local real estate agents to get an idea of improvements that could 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.
An agent can also explain the health of the local market, something that may influence the timing of your sale.
Any profit you make on the sale of an investment property can attract capital gains tax. But there are ways to minimise tax. Speak to a tax professional to find out if you’re eligible for any deductions .
Carefully consider any decision to sell. Weigh up the pros and cons and be sure it’s the right move to help you achieve your property goals.