Is It Time to Sell Your Investment Property?

For real estate investors, the decision to sell investment properties is not something to be taken lightly. Investors commonly sell their properties when consolidating finances, flipping properties, or retiring. While there is no formula to determine when to sell investment properties, there are many indicators that can help you decide if the time has come. This article will discuss several signs that it is probably time to sell your investment property.

Why Do People Sell Investment Properties?

Investors ideally sell their properties when the values have skyrocketed, or the market is generally at an all-time high. However, many property investors also lose money by keeping properties that are affecting their cash flow adversely. This makes selling motivations a little more complicated. Here are some reasons why people sell investment properties:

  • Need for funds – whether they need quick access to cash or improved cash flow to use toward greater investments, numerous property owners simply do it because of a need for more funds.
  • Low marginal tax rate – most of the time, selling during times of low taxable income means lower rates of capital gains tax to pay.
  • Changing needs – investors may also sell their properties due to personal or financial circumstances, which can make investing a non-feasible option.
  • Low growth potential – if the area’s market has not improved in a while, property investors may move elsewhere before the value drops further.

The Occurrence of Major Life Events

Some life events may cause you to re-evaluate owning an investment property.   These include terrible accidents, new family members, job relocations, and unwanted payoffs. Most of these events require you to have funds on hand. If you don’t have any current means to get cash, you may be required to sell your property.

You Plan to Retire Soon

This is another common reason why investors sell their properties. By doing this, you can produce some capital for your retirement. You may save on taxes by investing all or a portion of the proceeds to make after-tax contributions. Still, it’s necessary to remember that selling investment properties after retiring may affect entitlements regarding age pension.

When You Have Better Sources of Passive Income

Having a diversified passive income stream is important because you never know which asset class will flourish and which will not. If you currently have better-performing income sources, you can consider selling the property you’re holding. This allows you to focus on something more likely to become fruitful.

Where to Sell Your Investment Property

For those who have decided to sell their property around Orange County, California, you won’t go wrong with JAM Properties, LLC. We are experienced professionals who are friendly, knowledgeable, and ethical in the area of real estate.

You can count on us to look for solutions that will benefit all parties involved. Furthermore, we buy houses in cash and are willing to purchase your house as-is. We also assist other real estate investors or those who are interested in fixing and flipping their homes. Feel free to contact us at (949) 438-4343 or info@jampropertiesca.com.