Selling Your Investment Property

When you decide to sell a rental property, it is worth knowing what’s involved with the sale and how to maximise any gains.

The opportunity to make a quick profit may be one reason for selling. Flipping, where a buyer renovates an older property and gets the place back onto the market as soon as possible, can be a strategy that relies on good timing. But it could be challenging to make a quick profit if the market slows down.

If you are thinking about selling your property, it makes sense to spruce up the property before open inspections begin. This can be as easy as organising a thorough clean-up or undertaking simple improvements that could improve the property’s appeal and market value.

Speak to several local real estate agents to get an idea of improvements that could add value at sale time. The trick is to avoid overcapitalising, or spending more on renovations than they add to the property’s value.

An agent can also inform you about the health of the local housing market, which may influence your timing for selling.

Capital gains tax is charged on the profit you make on the sale of an investment property. But there are ways to minimise the tax you pay on this profit. Speak to a tax professional to find out if you’re eligible for any deductions.

Consider any decision to sell carefully. Weigh up the pros and cons, and be sure that it is the right move to help you achieve your property goals.