Considering Selling Your Investment Property? Start with Your Exit Strategy

With so much discussion around potential changes the Australia’s CGT Discounts, many investors are readying themselves for an unexpected sale. There are key differences between selling your own home and selling your investment property. The key differences occur before the sale, so you need to plan your exit strategy well in advance. If changes to the CGT discounts may lead to you selling your property, read the full article to find out the key considerations and steps to planning an effective exit strategy.

Investors choose to sell their investment properties for a variety of reasons. Whether to realise capital, ease cost-of-living pressures, or respond to ongoing changes in government legislation.

Sometimes these decisions are strategic; other times they are reactionary. With continued discussion around potential changes to Capital Gains Tax (CGT) discounts, many investors are reassessing their positions and preparing for a possible sale.

However, selling an investment property is not the same as selling your own home. As an investor, there are additional considerations, complexities, and steps involved. For this reason, it’s critical to plan your exit strategy well in advance.

While every property sale requires a strong selling strategy, such as engaging an agent with effective marketing, access to the right buyers, and strong negotiation skills; your exit strategy should come first when selling an investment.

In these circumstances, you must also consider factors such as existing tenants, lease agreements, mortgage commitments, tax implications, and any required maintenance or compliance works. Each of these elements can significantly impact both the timing and outcome of your sale.

A common mistake many landlords make is engaging their property manager to sell their investment simply because of an existing relationship with the tenant. While this may seem convenient, it can often be a misstep.

Many agencies are highly skilled in property management but do not specialise in sales, let alone the sale of investment properties. Particularly in recent years, with frequent legislative changes, selling an investment property has become increasingly complex and requires specialised expertise.

At Johnson Real Estate, we have the experience and knowledge to help you develop a well-considered exit strategy and guide you through every stage of the process. Our goal is to deliver a successful outcome for all parties involved: a delighted seller, a confident buyer, and a tenant who is respected and considered throughout the entire journey.

We have developed a simple guide to help you plan your exit strategy and would be happy to provide you with a copy. Simply reach out to our team, and we’ll send it through.

If you’re considering selling your investment property, we would welcome the opportunity to have a conversation and help you navigate the process with confidence.

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