There are various reasons by people decide to sell. It could be due to family expansions and on the other hand a reduction in the number of the family. It could be work related or even a decision that a change is as good as a holiday.
If you ask me this question my answer will be NEVER! For me you will be calling in a registered value to protect what may be your biggest investment to date. But I don't know your circumstances;
These are just a few reasons why you might want to sell. If your reason is not one of the above, don't worry for if you want to do something you will always find a reason for doing so. This is just human nature, not so?
The baby boomers - The experts say there is another boom just around the corner, with the potential to change the real estate market and provide a substantial revenue boost for agents who are ready to capitalize on it. Why? Retirement of the baby boomers! The baby boomers are getting older and closing in on retirement age. They might want to generate cash by selling their family home and moving to smaller properties or they might want to leave the busy city behind and move to the suburbs, even right out of town. As a baby boomer you cannot afford to make a mistake at this stage of your life. Think twice about selling your home and making that move and revise your retirement plans.
The housing market - In South Africa optimists predicted that home prices, which had more than doubled in parts of the country between 2000 and 2005, would continue to rise at a normal pace of 5 - 6%. This is not happening. Some sellers are forced to cut on their prices as housing sales across the country are slowing down, for both new and previously-owned residences. You might think that should you hold onto your property another few years prices might even come down more and in the end you might make less. Unfortunately we cannot tell. The property prices might stay robust for another few years as the experts are confident that quarterly earnings will continue to increase even during a house market slump. And then the average, historical figures show that property doubles in value every 10 - 15 years, therefore taking a gamble with your property at stake might be dangerous
Making a profit - It is always nice to make a profit and it does not matter how big it is. In your mind you might have decided that it is the wisest, best and lastly the easiest decision to sell your property now as interest rates are still low and there might still be many interested buyers. But have you had a good look at what properties are selling, did you took the level of demand and the type of properties that are selling in consideration? And in the end have you asked yourself' "What is the element of risk?"
Reducing the cost of a new home - I think that the most common reason for selling a property is to use the profit as a down payment on the next property, reducing the cost of this new home by reducing the long-term cost. This is not wrong in fact if you have paid off all your debt and increase your down payment you can significantly reduce the long-term cost and put yourself in a better financial solution. But there are plenty over investments out there that you can invest in that will give you a sizable nest egg.
It is important to say that there is no definitive "best" time to sell. What ever your motivation might be you should consult with a financial planner who can review your financial situation and who can assist you in making that decision.
The editor
Pat Jewell
www.cyberprop.com
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 Newsletter:
30 July to 5 August 2010 - Howick, KwaZulu Natal, South Africa |
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