Perhaps you’re at a crossroads or simply looking for a change. Either way, making changes to your investment property portfolio isn’t as simple as choosing to buy or sell. There are many factors that should influence your decision.
One thing you should think about is whether a strategy for expanding your investment property portfolio makes sense for you. Any decision you make regarding your investment should be made using sound logic.
Take a step back and examine your financial situation. Look at the performance of your current asset or assets. It is also vital to examine any data available on the areas you are looking to buy in and seek the advice of experts. By taking this into consideration, you will be acting based on the information available rather than your personal instinct.
If your portfolio’s performance is strong and you decide to add to it, then you should decide on your approach to maximising your return on investment as your portfolio grows.
Some investors seek out creative ways to increase the value of their property. Although this often means taking greater risks, the rewards could be greater as well. By renovating a property, some savvy investors increase the overall value of the property and their rental return as well.
If your heart is set on exiting the investment property market, there are many factors to consider before taking those steps too.
First, look closely at the real estate market for your suburb and those surrounding it. It is important to understand the past trends of your location. Whether prices have continued to rise or have stagnated in recent times, this will be a key factor for you to consider when selling your investment.
These figures are important when trying to predict the long-term real estate environment.
One way you can sell is via conducting separate negotiations with individual buyers through a private sale. While this process can be less intimidating to buyers, the sale length can be dragged out.
Another means of selling your property is via auction. Auctions can create a sense of urgency among buyers and the competitive bidding that often ensues can lead to the selling price exceeding the expected value of the property, maximising your return on investment. However, this method does sometimes come at an additional cost.
Whether to expand your investment property portfolio or exit the market is entirely up to you. While the decision is entirely yours to make, it is vital to have the best possible people around to help you to make it.
Contact us today and let us help you take the next steps in your property adventure.
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