ASK58: Never sell a property?
This week on Ask Rob & Rob, Mike...
Asks Rob & Rob – Should I never sell a property?
Rob D admits this is something you hear a LOT from everyone, including from The Robs. However he also says that his thinking has changed a little in recent year. If your property price is increasing a lot faster than the rent and your yield has fallen, you could take the view that you have had the majority of your gains and you could sell now and buy a property elsewhere where there's more growth in it. There's no right answer, and there is a logic in both approaches. Rob B says his attitude has changed too but only slightly - and that still feels that never selling is a decent principle. There's a time and place to take stock and maybe move some units on though - for example if you have a dud property that just hasn't performed as you expected, or was one of your earlier purchases and you made some mistakes on it, or you have had a constant string of bad tenants that have cost you a lot of time and money; then you should be prepared to walk away and move on to something else. Rob B continues by saying that as he believes in the 18 year property cycle, he will be inclined to move properties on when we're at the top of that cycle (which we are a fair way away from just now). So it's not quite a 'never sell a property' answer, and there is definitely a bit more to it than this, depending on your situation, your longterm plan, and where we are in the cycle.
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