When a person invest in a property for forced savings purpose, it is important for the person to know when it is the right time to liquidate the property. If the person keeps buying and keep holding onto the property without knowing how to liquidate the property, they will not be able to enjoy the paper gains generated from such savings in property investments.

When To Liquidate VS Hold A Property

Some people tend to fall in love with their proper which is a big NO in this property investment, hence causing them failing to dispose and unable to liquidate return from the property due of being too attached to the property.

Decisions to liquidate and dispose your property should highly rely on your actual purpose of investing in the property. If your purpose is to reach a targeted return, once you reach it, you should dispose the property and look for other properties to invest. However if your purpose is to sell it off to fund your children’s education, sell it off as your needs arise. Or maybe if your investment goal is for your retirement traveling program, you should sell it when you reach retirement. Alternatively, when there is a better investment opportunity arises for example your property only had 6% of return while the new one with 12% then it is about time to let it go and invest in the new one to aim for the higher return.

But what if you want to hold on it because you hear prediction that the market value for that area may rise due to the development of malls and other transportation hubs there. Be aware of these news for your intended investment area, as these may sway your decisions whether to sell now or to hold.

Red Flags to indicate when you should liquidate your property

 There are times where you think it is the right time to liquidate or sell the property that you have invested  in. That happens under few circumstances that might benefit you or save your day:

Too much maintenance – maintenance costs are part of owning the property that will add to the investment returns. When the cost is too much, maybe it is the time to pull off the plug.

Rental return – when you honestly sees the rental return is continuously falling then maybe it is the  right time to move on to something more profitable.

Poor performance – when you realize that your property is no more doing something within your expectation, and then it might be the time for you to sell it off.

Conclusion

Therefore, if you decide to invest in property instead of saved in fixed deposits, please ensure that you are active in looking out for the property potentials as well as watching out for the red flags of when you should liquidate your property.