5 Factors That Decide How Long An Investor Should Hold Onto A PropertyJuly 31, 2018
Deciding on whether to sell or hold the property is a key concern for investors. And when the market is slow, an investor should consider various factors to decide the future of the investment.
Following are some of the instances that an investor should look out for
1. Stable prices
When the price of the property has not increased significantly in recent times, it is advised to take a decision on the investment. Holding on to real estate when it is not performing well over a period of time is not recommended as it may incur a loss for the investor.
2. Dip in rental returns
Rental returns should be evaluated alongside capital appreciation to assess the performance of the property. If the rent has remained stagnant for a longer duration, it denotes that the property or the location is not enjoying a healthy demand in the market. Experts advise encashing the capital value if rentals could not cover the maintenance of the investment.
3. Growth in infrastructure
The neighbourhood where the property is located should feature good infrastructure to yield good returns. There must also be new plans and initiatives in the pipeline for future appreciation of the property as well as the neighbourhood.
4. Maintenance cost
When the costs associated with the maintenance of the property is demanding than ever before, the investor should assess his financial situation and decide on future goals and take a decision regarding the property.
5. Onset of construction
If the property is brought during pre-launch when the prices were low, selling at the time when construction begins is wise as property prices are likely to appreciate with the onset of construction.
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