Many friends love to ask if they should sell their property now? My answer has always been “do you have a reason to sell your property now?” I am serious. If your reason to sell your property now is because you want to put that money into the bank, then maybe think thrice. FD rate is only 2% or lower yeah.
If the market is going to get worse very soon, it may be a little late to only think of selling the property now. Selling a property usually takes months to complete.
For this article we assume you are an owner who could still hold on or you could choose to sell and that selling is just an option versus someone who’s struggling to repay the mortgage every month. If you want to sell your property faster, Here are 6 tips to sell your properties faster. If you just need 6 reasons why you may want to sell your property now, then please do read on.
#1 – You really hate that property that you currently own.
You do not wish to drive there because somehow you hate the design, hate the neighbourhood, had a bad experience renting that home out or somehow it has bad fengshui and you could feel something is wrong with it. If this is the reason, wait no more. Quickly engage a real estate negotiator (REN) and let someone else own that home and you take their money instead.
#2 – You want to invest the money into some other investments
If you found another investment which could yield a higher return versus this property which is not generating anything, better sell quickly. Depending on which book you read, any property which is not giving any positive returns is a liability and you should just sell it and move on. Anyway, if this is the advice, I think at least half of all the properties bought a just a few years ago would never have positive rental yields…
#3 You need the money to do whatever you like to do
Let’s just understand that sometimes, we just need the money to do something other than investing. It could be anything and it does not even need to be another investment. Sell the home, take the money and you could use it for any purpose you like. Holiday with family? As long as you need the money now and could not wait any longer, then by all means, sell your property now please.
#4 Many prominent people said negative rental returns are bad
Your monthly mortgage is RM1,500 and you will have to start paying it again soon even if you have taken the moratorium a few months earlier. Your rental is meanwhile just RM1,300 and once you add up the maintenance fee, then it’s a negative of RM400 every month that you rented it out. If you sell, then you stop losing RM400 x 12 months which will come to RM4,800 per year. So, if you believe negative returns are bad, then take action; sell your property now. (I do not agree to these prominent people yeah. It’s not such a direct comparison)
#5 No Real Property Gains Tax (RPGT)!
Under the Penjana incentive. You could now sell your property even if you have bought it less than 5 years ago and there’s no real property gains tax (RPGT). None. Zero. Nothing. That’s a lot of money too. Bought RM300,000. Sold RM500,000. Gross profit of RM200,000 and if you get hit by a 10% RPGT, that’s RM20,000! Year, it’s actually enough for a family of 4 to travel overseas (next year lah, not so soon).
#6 You have a really good offer.
It’s tough to get any offer close to the market price in the current market. So, if you have a good offer which is not just on the market price but maybe even above it, it may just be the time to take that offer. Just remember to check what’s the actual market transacted prices lah. Buy with reference to transacted price is possible Do not just listen to your friends or look at market listings which does not mean it will ever get transacted.
So, if one of these 6 reasons happens to be one of your reasons, then yeah perhaps it’s time to sell your property now. Remember to get a good real estate negotiator (REN) yeah. They will not just make things easier but may even teach you what to do prior to selling your home which will make it sell faster too. Oh yeah, besides these 6 reasons, if you just like many, many, many more reason, here’s a google search result for ‘the best time to sell your property.”
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