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When Do I Sell An Investment Property?

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| 30 Sep 2011, 03:55 AM Agree 0
Copy of my latest blog post at

We all understand property investing is a long term strategy – basically the longer you hold a property the better your results will be. This mantra makes a lot of sense when you factor in buying and selling costs, potential CGT liabilities and market fluctuations. There is no argument.

But, (you’re thinking here comes the “but” aren’t you) that is not to say there aren’t times to sell a property.

The key question is - When do I sell an investment property?

Let me explain using my experience.

My wife and I bought a Perth property in 1985, paying $49,000 for it. We were scrambling off on an overseas holiday and after 2 days of ‘comprehensive’ research, we signed some documents before jumping on the plane.

Long story short, we eventually sold that property in 1999, for $140,000 and used the profits to help build our dream home in a coastal community and keep our non-deductible debt at affordable levels.

Since then we adopted a mantra of never selling and built a relatively large portfolio, using the increasing equity created by a rising market and relaxed lending standards to push the envelope. Over the last 10 years, this was relatively easy to achieve, but as most property investors would know the market has changed and different strategies are now required.

This brings me to the initial question. When do I sell?

I recall reading Peter Spann’s book, “Wealth Magic, From broke to Multi-Millionaire in just 7 years”, many years ago. In his book, Peter identifies three occasions investors should sell their property;
1. You get an offer too good to refuse.
2. You need to shoot a couple of ‘dogs’ (underperforming properties)
3. You can put the money to better use.

In my opinion Peter's three times to sell list is spot on. There are times to sell an investment property and having three rules (as above) will give property investors a terrific set of guidelines. Stick to these, rather then buying and selling without consideration, will increase the likelihood of success.

Me? Well, I am shooting a couple of dogs so I can put my money to better use.

What are you doing?
  • Mike R | 16 Nov 2011, 11:58 AM Agree 0
    Yes - I think that list is pretty good. I also have the mantra Never Ever Sell. But the management of the process requires that you dont get backed into a corner where you **HAVE** to sell. A big distinction and important part of a long term strategy. A dog may get you there if you dont act soon enough or donbt have the structural strength to ride out its Pup years...


  • Markjames220 | 28 Jul 2012, 07:21 AM Agree 0
    Choose the occasional times when selling an investment property makes sense & is your best option to get more profit but these are exceptions to the norm. Your selling costs not to be less than purchase costs .Does not choose recession period for to sell property.
  • addicted | 28 Jul 2012, 09:10 AM Agree 0
    Bill Zheng now has a new strategy whereby you buy 2 new builds, sell one. Each year you build 2 and sell one.
    This gives you an income stream. Sure there is CG but it seems to work well if you are transitioning to retirement or only want to work part time etc. The figures look impressive (as they always do). It's not for me but I can see how others might like it.

    In addition to your 3 reasons for selling I'd add when you buy a property with that specific purpose in mind.
    Eg buy/reno/sell. It's not always about getting more properties. Sometimes it's about getting the cash for other things (like not working).
  • millennium | 13 Aug 2012, 12:20 PM Agree 0
    Its depend market value and rate.if market is stable then you can go for it.Property management anchorage ak can help you resolve your if you have any problem about your property selling .you can take this help .they are the best service provider.
    property management anchorage ak
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