Ask yourself these questions if you’re wondering whether to sell or keep your rental.
People who own rental properties have been asking me if they should sell them given how good the market is or if they should continue leasing it. If you’ve been wondering about this yourself, today I’ll share three questions you should ask yourself to help you evaluate whether you should sell or continue leasing:
1. What are your overall goals? Is it your goal to own a portfolio of rental properties that you continually build upon? Assess where you want to be in five, 10, and even 20 years down the road, and let that weigh into your decision.
2. Do you think prices will continue to rise? If they do, then it may make sense to keep that property. If not, consider how you could reinvest the money from your sale and whether you could get a better return on your investment.
3. What are you going to do with the money? Will you use it to pay off other debts? Will you reinvest it into another property? Is it just going to sit in the bank as a security blanket? Or will you put it into another vehicle to return another business, real estate, or stock market investment?
So is it a good time to sell? Absolutely! Prices are very high right now. But ultimately, you need to consider what you’re going to do with those funds and whether that coincides with your overall goals.
If you’re thinking about selling a property or you’re in need of property management services, don’t hesitate to reach out to us. We’re happy to help you.