Selling investment properties is the final stage of investment. It’s extremely important, and it’s important to know how to get the best outcomes for your investment.
Planning a sale
You need to keep a clear focus on what you want out of the sale of your property. The issues aren’t always obvious. You can actually undervalue an investment property quite easily simply by not being in touch with market prices or by undervaluing revenue, etc.
The basic measures are:
Net cost relative to sale price- This is a net figure, say you bought at $1 million, and are selling at $1.5 million, for example.
Revenue cost- Rental value or other revenue sources. Say $100,000 a year relative to a $1 million cost for the property.
Capital gains tax, if applicable- This will affect your net return.
Market prices if you’re looking to reinvest- Are you buying in to a rising market? If so, your return needs to manage the likely cost of purchasing another property.
You can see where your number will come from- A bottom line figure. This is the real return on your investment. If you’re not sure how to manage the sale, get some professional advice before making any commitment to sell.
Source: http://www.ehow.com/how_2296597_smartly-sell-investment-property.html
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