Have you ever been given this advice, ‘Hold on to the first property you buy’; or been told that ‘The smartest property investor is the investor that never sells’?
There is a lot of truth in this. One of the common reasons for an investor to sell is that they are impatient to see the fruits of their purchase. This ‘hurry-up’ may see them selling in a slow market or before any serious capital gain has occurred.
You should try not to see selling as the only way to realise a profit. You should explore the option to increase your property portfolio as your borrowing power increases with the rise in your equity.
If you have wisely purchased in the first place, and have the property well-managed, holding the property (or properties) long term could mean greater long term wealth.
Ask yourself this question: What do I want out of my investment property?
For many, the answer is a lump sum or continued income on retirement. When that time is a while off, patience doesn’t always come easily.
First-time investors have often stretched themselves financially to get a start up the investment ladder. It’s not until the portfolio grows will they be able to spend more on lifestyle without having to sell to do so.
The best strategy is a planned property investment program formulated with professional assistance. Be guided by professionals until your assets have increased to the level that suits your personal aims and aspirations.
Make your first investment property a blueprint for your future.