Making a decision to fold can be a nerve-racking ordeal. And we’re not just talking about playing cards.
Sometimes you need to make difficult decisions about the properties you have purchased. Whether the property hasn’t performed as you had initially hoped or some life event has changed your plans.
There’s one thing for sure though – the stakes are high.
In episode 18, the Property Planner, Buyer and Professor dissect “When to hold and when to fold!”
Listen as David Johnston, Cate Bakos and Peter Koulizos, take you through the considerations before making a decision, how you can avoid having to sell and share their own stories of folding too soon.
PS – Be sure to stick around to hear the trio singing Kenny Roger’s Gambler!
- Hold or fold: why smart home owners should keep a cool head when the property market starts to dip
- Why short-term investing has long-term consequences
- How our mortgage strategy helps us to hold properties
- Mortgage Strategy 101 – Ep. 3 Holding Property
- Five mortgage strategies that can grow your wealth
- Why your approach and assessment of risk is paramount to property success! (Ep.10)
- The critical mistakes of property investment – starting without a plan
- More data reinforcing the weak returns of new apartments – something we have been banging on about for almost two decades
- Why the land-to-asset ratio of a property can determine its future price growth
- How data can help property investors identify gentrification before it happens
- Property Cycle Management – why now is always the best time to buy if it suits your personal economy and you have a long-term property plan (Ep. 12)
- Why your Mortgage Strategy is more important than your interest rate! (Ep. 9 )
- Choosing whether to hold or sell investment property
- Questions to ask when buying an investment property
- High rise towers – yet another reason to stay away
- How to succeed with Property and Create your Ideal Lifestyle
- Mortgage Strategy 101 – YouTube video series.
- Riding out the storm – sometimes you just need to be patient and not jump the gun in making a difficult decision.
- The decision to sell an asset is vexed and varied – a common mistake is to look solely at the property, without considering your overall financial situation and lifestyle goals.
- Time in the market could negate a bad decision – even if you have selected poorly, if you hold for long enough, the property can become positively geared and there may not be a case for selling.
- The mistake of taking a short-term view: don’t expect your property to out-perform from day dot.
- Don’t let your ego get in the way – it’s hard to come to terms with the fact that you didn’t buy the right property. Holding it could be costing you – the longer you hold, the less opportunity you have to acquire a better performing asset.
- Remember that each sale and purchase is more money out of your pocket asides from the property purchase.
- Have you done a detailed review of your property?
- Just because you sell, doesn’t mean your borrowing capacity will be increased – do a full assessment before you put your property on the market. Knowing the financial outcomes is critical.
- If it’s time to get out – weigh the pros and the cons of holding v selling.
- Capital gains tax – how will this affect your net proceeds of sale?
- Taking debt to your grave – your stage of life may mean that you need a debt retirement strategy. It pays to have a plan.
- It’s time for your annual review – review your property plan and personal circumstances annually – you’ll be surprised what can change in 12 months.
- Mortgage strategy and risk management – the fundamental bedrock to holding property.
- Buffer yourself to ride out unforeseen changes in circumstances which could trigger needing to offload an asset – such as an injury or being in between jobs.
- Don’t forget to plan for the major changes you foresee – starting a family and moving down to one income – how will you plan to manage your finances and expenses during this period?
- The silent killer of wealth – selling a property when you could have held it – it takes the right property planning and strategy to make this happen.
- The most common reason we see people needing to sell is because they want to spend more on their future home, not because they purchased a dud!
- The regret of selling v the regret of holding – how many times have you heard someone voice regrets about holding a property? Most of us regret selling an asset we didn’t have to.
- The mistake of cashing in your short-term gains – losing your position in the market as a result. What would that property have been worth if you had kept it?
- If you can buy and hold every property, you save Capital Gains Tax and sales commissions that eat into your net wealth.
- The ultimate goal – make as few property decisions as you can to achieve your ideal lifestyle.
- Don’t dawdle – if you decide to sell to purchase a better asset, get on with it! Don’t wait for the market to out-pace you.
- Have you sought the advice of your independent and trusted advisors?
David Johnston – The Property Planner’s Golden nugget: get your mortgage strategy clear before settling on a property, how you set up your loans and money management system will potentially have the greatest impact on whether you can hold, particularly if you have plans to purchase a future home.
Peter Koulizos – The Property Professor’s Golden nugget: This one’s a singalong to Kenny Roger’s The Gambler! 🙂
“You got to know when to hold em,
Know when to fold em,
Know when to walk away and know when to run.
You never count your money,
When you’re sitting at the table,
There’ll be time enough for counting,
When the deal is done.”