You don’t have to buy and hold forever

Property investment - buy and hold

We recently reviewed our buy-and-hold strategy. We’ve been investing in property for ten years and have never seriously considered selling a property. Until now.

One of our properties has increased in value considerably without delivering a similar increase in rent. This means it now has a relatively low yield.  If we sell it for its market value we will make a considerable profit, even after tax. We could use this profit to pay off our home. Other benefits include:

  • Decreasing our borrowing exposure (or LVR)
  • Only having debt on investments
  • Increasing the overall yield of our property portfolio

Not all properties increase by the same rate, at the same time, in the same area. You might find that one of your properties (even if it is your PPOR) may have recently increased in value considerably. You could sell the property or you could use this equity to fund a further investment.

So keep an eye on the market and ensure you know what your properties are worth. You can ask a real-estate agent (most will do free appraisals) or visit one of the many online sites that list growth values by area. It’s easy, quick, and might provide you with a golden opportunity!

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