This is one of the most common questions that home-owners ask me.
Especially so in today’s worsening environment for property sales, where the rates of sale prices has plunged for private non-landed property since last year. The situation looks bleak for private property owners, exacerbated by other external pressures.
So, if you are a private property owner, should you be going along with the rest, and try to sell your property as fast as you can?
Or, if you are renting out your property, should you also kick your tenant out and sell it?
No, I do not recommend that. Keep in mind that overall transaction costs can be high, and the market can be extremely illiquid especially in a declining situation that we are experiencing right now where the property market is on a downturn.
This applies especially for home-owners who have just bought their property not too long ago. Holding your property for such a short time is always detrimental to you.
Take into account all the costs you would have incurred, on top of the loss in the selling price that you are going to make. It will not be pretty.
Rather than selling it all away, I would advise you to hold it first, and if you are renting it out, continue doing so. Having some form of rental income is better than having none at all.
Bear in mind that the property cycle always consists of ups and downs. Eventually, the market will rise up again and if you are patient enough to wait till then, you will see the fruits of your efforts.