Much about America’s housing situation has changed over the last few years. We’ve seen sharp increases in rent and mortgage prices, the highest general inflation in decades, and the lowest rate of young homeowners in quite some time.
In Phoenix, Arizona, the cost of the average home has risen from $264,000 in March 2020 to $433,660 in July 2022. The average home price in Tampa, Florida has shot up from $253,000 in March 2020 to $408,997. These prices make it a difficult time to get on the property ladder, whether buying as a primary residence or as an investment property. What it does do, however, is make it more appealing to sell.
Most people entering the property market as an investor believe in a “buy and hold forever” mentality, and it’s one that can make sense for a lot of people. However, there are plenty of circumstances that can make the idea of selling your investment property (or properties) an appealing one. If you’re still on the fence about what the right move for you is, keep reading for 6 good reasons to sell up now.
Take a hard look at the numbers and see if your venture is as profitable as it seems. If you are losing money when you do your calculations, something needs to change, and fast. If you’re in profit but not by a lot or, worse, aren’t factoring in money for your time, your property may have become unprofitable.
While rental prices have increased exponentially (especially in popular areas), it’s not always enough to cover the costs of other inflated prices. If you’re paying for maintenance, utilities, insurance, and appliances, that monthly profit and loss may not look so good.
Being a landlord can provide you with a stable income with little daily work required in the right circumstances, but there are so many proverbial plates to keep spinning. If your property experiences new tenants every year, you’re faced with contracts, rental agreements, inventory checks, and/or meetings with property management companies. Bad tenants can make what once felt like the best investment strategy in the world feel like the worst.
If you’ve experienced the above and are tired of it, it may be time to sell up, take a break, or move on.
The market is still strong and you can make more from selling than you would from rental profit. The US has seen shockingly low inventory levels over the last few years, meaning people will be more likely to pay higher prices for properties. If you have a good property in a good location, you may make more profit selling than renting.
Being a landlord requires work, even if you have a management company doing the majority of the menial tasks for you. Your life has changed since you bought your property, and your current circumstances may not allow for the time and effort it takes for being a landlord.
Whether you’re more interested in an easy retirement, have new career goals, are dealing with health issues in your family, have too many responsibilities, or are just tired of worrying about getting unexpected bills and phone calls, it may be time to look at selling up.
Are more passive investments, like investment accounts, giving you better returns? If you’re approaching retirement, have young children, or simply want to live a hassle-free life, there’s no reason to spend more time, money, and effort on a property that isn’t your highest earner.
Selling your investment property doesn’t always have to be about finding a slower pace of life – you may be ready for a new, exciting venture. You may be interested in starting a business, becoming a partner in someone else’s, going traveling, or buying a bigger primary residence. Whatever you choose to do, you’ll need equity for it, and selling your property is a great way to generate those funds.
We’ve looked at good reasons, now let’s look at the reasons to keep your property:
- You enjoy managing your property. Some people relish the task of maintaining, managing, and improving a property, in which case, it’s the perfect job. As long as you’re enjoying the process of finding tenants, organizing your legal and property management team, and making sure everything within the property is going to plan, keeping your property may be the best choice for you.
- Your property is in an area where it’s more profitable as a rental property than it would be to sell. This can sometimes occur in areas where house prices aren’t high enough to warrant selling, but there are renters. If your property is bringing in enough money that you’re happy continuing to work on it as a landlord, you might want to hang on to it.
Are you ready to get out of your investment as soon as possible?
One of the most stressful elements of selling any property is the amount of time it takes to complete. If you’re involved with a buyer who is also in the process of selling their home to buy yours, you can find yourself entangled in a chain of sellers, buyers, estate agents, and attorneys. Ironing out all the kinks in each party’s situation can be time-consuming, with the average house sale taking 71 days, from listing to closing.
If you’re looking to sell fast, you need an alternative solution.
At PavelBuysHouses, we strive to make the selling process as quick and easy as possible. We’re a local, family-run company accredited by the Better Business Bureau and we specialize in quick, stress-free property sales!
We’ll buy your Massachusetts property for cash exactly as it is, with no repairs, viewings, or negotiating necessary. Our service is free and you’re under no obligation to sell to us, even after we’ve given you an evaluation.