[2BAD4U]

Many advisors, books, etc, say that you should never sell your investment property. My thoughts are that this is not always true and you may actually be better off selling. For example, in my situation I would expect to have enough equity in my investment properties in 2 - 3 years to be able to sell them and pay off my own home and be debt free

This would then leave me in a position to invest what I was paying in mortgage repayments and / or purchase another investment property(ies) and have ALL my repayments 100% tax deductible.

Like they say, everyone's circumstances are different, etc, etc. but I think for most investment "GURU'S" to be saying never sell is poor advice.

[Wildkactus]

I am in the never sell camp, but that does not mean I will not bulldoze the property and redevelop, It's the land that is the main investment for me the property is just the cash flow to hold the land.
I also think that most properties have a used by date and you need to upgrade these to keep with the current trends and the like, I will redevelop where someone else may sell and upgrade there portfolio that way.

But I guess it does come down to your situation, investment style and risk level.
everyone has a differnet level and outlook on these.
I don't think there is a right or wrong here it will all depend on the persons situation.

[reals007]

I also didn't sell my investment property. Many agents and buyers forced me for sell my property but I need my property and its important for me. I have not any plan for sell my property.

[jbocker]

Plan is not sell any property, But I did once when I got an offer I couldnt refuse. A real dream situation.

Anyway would not normally sell. I apprecaite 2BAD4Us situation though where you sell to pay off your home loan. A good strategy. Get reid of the non deductiable debt and take out loans against investments.

Since paying off the home I have not taken equity out on it to fund another property*. The reason being if you end up in the poo, and the bank needs to regain their money they will take what they need to get it as quickly as they can, that could easily mean your home particularly if the rental property has become marginal.

* I had done this initially to start my property investments, but paid this off first. Subsequent deposits for other investment property have come from equity in earlier investment property.

If I do sell, it will be when I retire, so that the proceeds become my sole source of income, abd CGT calculated appropriately. Not selling I am hoping that rents will fund retirement (I dont want to be dependent on a pension).

Cheers

[awg]

One big advantage of retaining property, is that the equity can be used to fund further purchases, maintaing negative gearing, and build portfolio size, once the first property becomes cash flow neutral.

[younginvestor]

FOR THE RIGHT PRICE, ANYTHING IS FOR SALE!!

I think this was said by Lang Walker, correct me

[brianbrockman24]

I know this is an old topic but I think it is a very interesting topic.

Although, there are distinct advantages to holding a property and not selling. I cannot say that I would never sell an investment property. If selling the property meant I could get a better property instead, I would jump on it in a heartbeat.

Investing is a business and there should be valid exit scenarios. If you don't, it is possible that you are throwing your money into a money pit.

My two cents.


Brian
http://seekingfortuneinnewyorkstate.com/

[Ladyhawk]

great thread...enjoyed the read.

[MelbKate]

I'd only sell if the capital growth wasn't sufficient e.g. an off-the-plan place that turns out to be overpriced and has barely grown in value 2-3 years later. In that case, best to break even (avoiding CGT) and reinvest the money in a better property.

[rebel25]

i am selling now becuase in tassie i can buy for $235k a brand new home that will return $351 pw and comes with a 10 year guarantee from aust federal govt.

the homes are min 6 star sytandard in great locations and hobart had th highest capital growth of any city in australia for last decade ( ave 12.64% pa)

what are u waiting for?????

www.paramountgroupaustralia.com.au