Sell your property or keep it? The criteria that matter most
Whether you should sell a property or keep it is not something a general market headline can tell you. What matters is the role the property plays for you and the financial consequences of each option. So compare specific scenarios rather than a hoped-for best case.
Start by setting your own goals
Do you need capital, do you want to move in yourself, or should the property keep producing an income? Take into account your time horizon, the effort that managing it involves, and how much of your wealth is tied up in this one property.
Work out realistically what keeping it costs
Set the income you expect against running costs, financing costs, maintenance and a reserve for shortfalls. Factor in a less favourable scenario as well. A possible rise in value is not a guaranteed sum you can use to pay ongoing costs.
Compare selling on the basis of the net proceeds
The starting point is a market price assessment whose reasoning you can follow. Deduct the outstanding financing, any taxes and the selling costs you have agreed. Then check what you need the remaining amount for, and what costs a replacement property or an alternative use would involve.
Base the decision on assumptions you can check
Keep a written record of your assumptions, your documents and your open questions. Have any tax specifics and the condition of the property checked by a professional. That makes it clear whether the decision rests on solid information or largely on hope.
A specific question about your property?