Time is everything and is very important in today’s world. Time to exit any property investment is possibly more, if it is not as critical as the entering time. What are the essential factors that you should take into consideration before you decide to put a property in the market finally?
Starters should consider the factors that can rise profits and minimize unwanted costs or losses. You also should ensure that the procedure of exiting your investment runs very smoothly to reap highest advantages.
At all times, you should avoid fast trading and opt to hold right till the time, your investment is probable to yield rich return. So rather than a easy BUY-SELL, opt for BUY-HOLD-SELL approach. A few factors impacting property exit decisions are external, i.e., directed by state of economy and buyer’s sentiment on the market. While the others are connected with the conditions of the property you’re trying to sell out. Let’s look at all these factors more intimately.
The external factors to take into account before selling out any property
Economy State – Property market is linked to job scenario directly. More the jobs in the market – better the demands for housing units. In addition, customer confidence in economy plays a vital role in creating strong buyer-seller equation. So, you should put your property on sale when these indicators are favorable for you.
Current property market trends – Judge whether it’s a sellers’ or a buyers’ market. It can be measured by talking to the property brokers and agents in the region and by getting an idea about how many people are buying for investments and how many people for end use. Moreover, you can refer to property discussion forums where the property owners and buyers interact. The continuing buzz on such forums will help take knowledgeable decisions. If there are sellers on the market, who are trying to make profit out of their investment, then hold your property until the time market’s scenario change.
Interest rates– Check out if the rate of interest on home loans is high or low. Low interest rate is biggest driver for the property market as most people take financial aid from banks as loans for buying your property. It’s much better to take a note of the rate of interest before taking a decision to sell out your property.
Demand-supply equations – With supply more than demand, the prices always fall down and vice versa. In order to measure the market’s trends in the terms of demand and supply, keep a regular watch on number of new releases in the region and check the under-construction and unoccupied inventory in the region. A good real estate consultant can provide you with this information and even guide whether it’s the correct time to exit your property investment or not.
Government policies – Take a note of all the government policies such as repo rate. A lower repo rate means low EMIs and it is the time that you should try to sell out your property as the buyers are keen to shell out wealth to materialize their purchasing decisions.
Proposed development in the concerned area – You must postpone your property selling decisions if there is any major growth driver such as a mall or a metro in the pipelines. Also keep a regular watch on proposed government projects as this can increase the demands and the worth of the properties in that area. Any socio-infra developments act as a development stimulator for the property.
The internal factors to take into account before selling out any property
When most external factors tend to be favorable, the real estate commands a higher price. However, they are the factors that you do not have any control on. There are a few internal factors that are related to the maintenance and upkeep of your property which can increase its value.
Value addition improvements – Cost effective and minor improvements like accessories and electric fittings, display corners and smart cupboards add worth to the property. Search for buyers only in case you feel that your property is set for showcasing.
Exterior conditions of the property– Garden, walls, landscaping, and outer designs form first impression which a buyer can get of the real estate. Broken pavements, badly painted walls and seepage create a bad view for the buyers. Ensure that you spend money as well as time on the maintenance of your investments.
Now, to find the right time to exit your property investment, you need to be updated regularly with the market trend so that you compare your property development with the development of other properties in same location or other. You’ll wish to exit your property investment only if you think that it is giving high returns and it’ll happen only when you’re in touch with the current market trend.
