With many investments purchased on a short to medium term outlook in order to enable lifestyle or retirement goals, the timing of the sale of any investment property is crucial to achieving the best possible financial outcome.
Before deciding to sell your investment property, it is advantageous to seek expert financial advice on how to minimise the tax implications of the sale. Your accountant or financial planner can advise how to best structure any capital gains or offset any investment losses, along with the best possible timing of the sale financially. A sale in one financial year versus another can often result in a different amount of money left in your pocket come tax time!
Touch base with a local real estate expert that specialises in property similar to your own, whether it be the type, style, building or precinct. Seeking agent advice early will be beneficial in understanding the current buyer demand and average days on market, or the time needed to sell, for homes that are directly comparable to your own. They can also keep you informed of any relevant sales, changing market conditions or potentially introduce buyers who are seeking a home or investment property like your own.
Another key consideration is whether to sell the property vacant or tenanted. Many investors don’t realise that they are able to sell their investment property with an exisiting tenancy agreement in place. In fact, if the rental return is at or above the market rate then it actually may be advantageous to sell your property with the current lease and tenants.
Consulting with your property manager on the current condition of your investment and the likely co-operation of your tenants can fast-track the success of the sale of your property. As presentation is paramount when selling a property, they can advise on any updates or improvements needed. They, along with your chosen selling agent, can help facilitate any works needed, such as cleaning, renovations or property styling, and also streamline the marketing of your home. You only get one opportunity at a great first impression - perfect presentation can help your property stand out and sell faster!
A new financial year is a great time to take stock of your current investments and start the planning required to revise or re-invest where needed.
To find out more about how to sell your investment property, whether now or in the future, contact our friendly team - your local apartment experts on 9091 1400.