It’s one thing to buy an investment property, but eventually, to make money, most investors are going to want to sell. So how will you know the best time to sell your investment?
If you are able to track trends that show when it’s time to sell an investment property, chances are you’re going to make money. If you sell on a whim, there’s a good chance you will lose.
Of course it depends where you live, because trends do vary from city to city, and state to state. But if you live in Peachtree City, a reputable Peachtree City real estate attorney should be able to give you some good, reliable advice about when to sell and whether you should hold onto your investment for the time being.
Business Strategies for Buying and Selling Property
Some people buy properties simply with the intent to flip them. They might live in the house for a while, but they aren’t looking for a long-term dream home. Generally a commercial property “flipper” will buy something with potential at a low or discounted price with the aim of selling it as soon as possible at a profit. They may or may not spend some money on the property to improve it and in this way boost the value.
By comparison, some investors buy low knowing they are going to have to wait for the market to peak again before they sell. This strategy works well for those with ready cash, and can make them a lot of money over time.
Other investors buy homes that they aim to keep long term so they can rent them out to tenants and receive regular cash flow from them.
Some keep property while they are able to claim depreciation, and then sell perhaps to consolidate their holdings or to upgrade their investment to a bigger and better property or properties.
Another reason for selling property is to stabilize income and increase profits. For instance, a property owner may sell a portion of his or her investment to pay off the debt still owed on other properties.
Largely it’s a simple question that balances the desire to sell with the need to sell. The ideal for many is to buy and then keep properties for regular income while the market is depressed and then sell when it peaks. Following the cycle, they buy again when prices fall. This is when it really does pay to keep track of trends, as any reputable Peachtree City real estate attorney will tell you.
However, ultimately there is no right or wrong way to buy and sell property and there are many issues that may prompt an investor to sell – some of which have little to do with growing the investment. For instance, those who haven’t been landlords before often find that managing a property and dealing with their tenants is difficult, frustrating and not necessarily worth it financially.
Personal issues might also cause an investor to sell, including a pricey medical crisis, a divorce, or retrenchment. While the return might not be as substantial as the investor hoped for, selling could be the only way out. In this situation trends simply don’t play the major role any more.