Owning and maintaining your investment property is only part of the property equation, albeit the one which gets the most focus. A key part of your property investment is knowing how long to hold a property and what will be your personal tipping point i.e. at what point do you sell and how can you be confident that you are selling at the right time?
Investing in residential property is not for quick, short-term gain, real estate professionals advise holding onto this asset for seven to ten years as this will allow you to ride out the natural cycles in the market and also get the greatest capital growth possible. To work out whether your property is growing in value equivalent to, at least, and preferably faster than, other properties in its suburb ask three different real estate agents their opinion of the property’s current market value.
If your property is not performing at least in synch with other properties in the neighbourhood you need to take an unemotional look at it: should you wait to see if the property starts performing in the next two to three years, or sell and reinvest your money in an area with better return?
Bring your accountant into the picture; they can give an overview of your property investment as part of your whole-of-life portfolio. Finally, get all the best independent professional advice you can afford - everyone’s situation is different and advice must be tailored to your own specific circumstances.