Having an investment property in Newcastle can be very profitable but only if you sell it at the right time. In today’s article, will tell you how to know if it is time to sell your investment property in Newcastle.
Buying an investment property in Newcastle is a solid financial move as you can earn extra income by selling or renting it out. But sometimes such properties fail to generate profit, especially if they are not sold at the right time. Holding on to a property for too long can incur considerable losses. Today we discuss the 4 signs that tell you when it is time to sell your investment property in Newcastle.
Costs Outweigh the Profit:
No investment property can generate income at a steady pace. There will be ups and downs and especially so for a rental property. Hence it is perfectly natural for the profitable periods to be followed by leaner phases. But if your property I underperforming consistently, then it may not be worth holding on to. If your property fails to attract and keep better tenants, then you may incur losses when you consider the property taxes, costs for maintenance, upkeep, bills, and other paraphernalia. The better judgment is to get rid of such property and utilize the cash from selling the property in securing a better investment.
Sudden Surge in Property Values:
The value of your property may suddenly rise due to a multitude of factors. However, once this happens, it might be better to sell the property for a substantial profit and then reinvest the amount in securing other investments at lower costs. Some owners tend to hold on to their rental properties even during real estate booms to maintain the monthly rental income. But rental income is not guaranteed as you may struggle to find good tenants in the future or rental rates in your area may drop. If you decide the sell in the future, there is no telling if the current price surge will last or not. Hence the better decision is to make as much profit from the property as possible when there is a chance.
Distance Issues:
If you live far away from your rental property, it might be difficult to handle the property without employing a property manager. But then you have to factor in his payments which can be significant. If you plan to handle the property yourself from a distance, showing the property, maintenance, repairs, screening potential tenants, and paperwork can be extremely tough to handle. Only in a small percentage of cases, such tenant-landlord relationships succeed. If you are facing such issues with your property already, it is advisable to sell it off and buy a property nearby where you are located. This can guarantee peace of mind and better handling of your property.
Costlier Upkeep:
As your property gets older, repair and maintenance costs get higher. This is especially true for rental properties as it is close to impossible to find tenants who would take care of the property as their personal property. As the costs of upkeep grow, your income keeps getting reduced. Not to mention the constant hassle of fixing one thing after the other endlessly. One way out is to renovate the property completely but then it would require a considerable amount of time for you to break even with the expenditure. Instead, you can choose to sell your Newcastle property so you can buy a property that is in better shape.
If you own a Newcastle invest property and are unsure if you should keep it or sell it, we can help you. By working with us, you will come to know which decision is the best for you and your property, keeping it, selling it directly or enlisting the help of an agent. You have several options for selling your Newcastle property and we can guide you in the right direction.
If you think the time to sell your investment property in Newcastle has come, give us a call on 0191 369 2088 or reach us directly. We will present you with all the options and help you choose the best one!