When is the Best Time to Sell an Investment Property?

Hello Sargun. The best time to sell investment property varies from one property to another on the basis of certain factors. These include the current market rates in the location of your property, increased maintenance costs and more. I recently sold my 3 BHK flat in Bengaluru after assessing these factors. I am sharing the things you should look for to decide the ideal time to sell your property in India. 

When to Sell Off Your Property in India?

• The Property Rates have Sky Rocketed

If the property rates in your area have risen to a level way higher than usual, it is time to sell off the property. If you think of waiting in the hopes of increasing your profits further, you’d be taking a big risk. It is good to lock your profits before the market turns volatile.

• High Maintenance Cost

If your property’s maintenance costs have risen to the extent that they are a burden, it is a sign to sell the property. You can look at a pattern or duration for which you’ve been paying higher than you would be comfortable and then think about selling the property.

• Insufficient Rental Income

Another sign for you to sell the property can be low rental income. Sometimes the market dips and it continues to do so. There can be many reasons for low rental income. Analyse them and if see no scope for improvement, it would be wise to sell off the house.

This is all. I hope this helps you understand when is the best time to sell an investment property for the first time.

Best time to sell investment property can make a big difference in your profit and overall ease of selling. When I wanted to sell my own property, I reached out to an experienced real estate agent to get some guidance on timing. I had been wondering if there was a particular season or market condition to look out for, and the agent explained the whole process to me. Here’s what I learned as we worked together to pick the ideal time:

When is the Best Time to Sell an Investment Property for the First Time?

• Consider Market Trends: The agent suggested checking recent trends in the housing market, which can impact prices. By keeping an eye on these trends, you’ll know when property demand is higher, which is when prices usually go up. Selling while the market is rising is the best general rule for selling.

• Seasonal Demand: The best moment to sell a property for a higher price is between October and March.

• Interest Rates: Low-interest rates usually attract more buyers. 

• If you're getting a good deal, sell: If a seller notices that their property is receiving a good price, they may decide to hold the deal. They anticipate additional bidders who will offer a higher price for their house. They lose even their greatest bargain in the process of this search. Eventually, a number of market conditions lead their property values to drop.

After working through each step with him, I felt more confident about when to list. 

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While determining when should you sell your investment property, there are several aspects to carefully consider. I recently sold my property and got advice from a real estate advisor. He asked me to consider the state of the market before selling my property. He highlighted that one can make the most money by selling when there is a seller's market, or when there is a high demand and a low supply.

When Should I Sell My Investment Property?

The advisor highlighted a few things that he asked me to consider before selling my property;

• It might be time to sell if the property has increased in value and you require the cash flow for other investments or bills.

• He said that October to January is a busy time of year filled with important holidays including Christmas, Navaratri, Diwali, and Dussehra. In India, festivals are considered to be an auspicious time for large-scale investments and acquisitions like real estate. 

• It is because of the high level of buyer activity in the market and the general optimism around it, that this time is widely regarded as the most advantageous time of year to sell real estate. 

• The holiday bonuses that many employers give out around this time are often in the range of 15 to 25 percent of the yearly pay, which increases the purchasing power of the service class.

These elements demonstrate why these months can be a great time to list a home for sale. It is because of his advice, that I finally listed out my property on NoBroker during October. I started getting calls from potential buyers, and finally, my property was sold out during Diwali. 

I hope this helps you understand when to sell an investment property.

Read More:

It is no secret that you can make a lot of profit from real estate. People have always been drawn to property. Acquiring a property is only the first step of the process. You need to plan when will you make the investment property for sale. There are factors that need to be considered including market prediction. Take a look below to know more.

It is recommended that you sell your investment property after 3-4 years of ownership. This will help you get certain tax rebates. For once, capital gains tax will be reduced amongst other charges.

You must look at various components of the real estate market before deciding time to sell property. You can conduct research online by looking at sites like NoBroker. The listed flats for rent will give you an idea about current market. 

During the sale of property, you must pay certain charges including  registration, stamp duty. The government offers schemes and makes changes to the same each year. Look at the current rate before deciding to  sell or keep rental property.

You can make profit on investment property for sale by deciding the right time and right buyer to sell. This is the end of my answer.

I know it can be hard to know when to sell your property as the best time depends on the property market, your personal circumstances, and the factors you do not have a say over. I am sure you want your property to be an asset, rather than a burden on your finances. So, when to put your investment property for sale? Check out the scenarios:

If you are looking to seek capital growth over the short to medium term but growth is very slow, then, in my opinion, you should sell your investment. You might actually end up costing money if you hold onto an underperforming property. Now, you know when is the best time to sell property.

You might want to sell to free up funds for other investment opportunities or business ventures. If you ain’t presently getting a good return on investment on your property, then you should sell it to buy a property with a better rental yield. For example, perhaps the property you have bought is an old property that is becoming very costly to maintain.

While it may not be suitable to sell your property to free up cash, for many, this is important, when life throws you curve balls. You should remember that the selling process usually takes a lot of time. It may also come at a cost, once you factor in selling fees, potential losses, and capital gains taxes (CGT).

You should consider renovating or refurbishing your property if you want to maximize your profit when selling your property. For this, you should look for ways you can get high returns from your property. For example, you can convert a spare room into an office, or add a new bathroom or kitchen.

Now, you know when to sell or keep rental property.

Read more:

I hope now you know when to put investment property for sale.