An investment property, particularly in Southern California, might seem like a can’t-lose prospect—something that’s wise to hang on to for decades to come. And, in many instances, investment properties will prove incredibly lucrative for a very long time—but as is the case with any other investment, it cannot be assumed the good fortune will last forever.
It might be that your investment property will bring you positive dividends for years to come, but you can’t assume that’s the case. Here, some questions to ask yourself to help determine whether it’s time to sell your investment property once and for all.
1. Is the depreciation tax deduction still available?
The depreciation tax deduction applies to any given property for a finite amount of time—as such, it’s wise to confirm with your accountant that you’re still enjoying it. If it’s run out, it’s time to sell and make a new investment.
2. If you sell now, will you net a nice profit?
If there’s enough equity in the property to sell, current market conditions likely mean that now’s the time. A First Team agent can conduct a custom analysis to help you better understand all the factors at play in your unique situation.
3. Are you sure you’re not actually losing money?
Believe it or not, many, many property investors are actually unaware that their investment is losing money. Again, a custom analysis from a licensed real estate agent will shed light on the matter. If you’re not absolutely certain, contact your real estate professional today. What, besides additional money, if you put it off, do you have to lose?
For help managing your real estate investments and analyzing your current strategy, contact a First Team Real Estate professional today.