Unbelievable! The prices have dropped so much over the last 4 years that actually make me cry to observe how much much people have lost in their investments. So have I. Actually I did make any loss as such. I could have made more money soil had sold these properties in 2007. They are worth less today than they were in 2007.
I own investments properties that “if I had sold” in 2007 I would had all that money sitting in the Bank for the last 4 years close to 7% pear annum.
I did not sell. Now I see some of my investments that were 3 times the value in 2007 I can today would be worth only twice what I paid for.
Then come the question: Shall I sell them? Too late. I did not sell when was good to sell. So I will keep them.
I am a believer that “bricks and mortar” are long time investment.
It is not hurting me financially and I can pay for them and still have deductions when comes the time for the “tax man” to do my accounting. I get a bit of a rebate from the Government and that makes me feel that I am a winner…on the surface.
Not selling I will be leaving all to my children and they will decide what to do with it.
I will not “be around” when that happens, whatever decision they make, so I don’t really care.
Now, how can I answer to your question? This is a tough one!
All depends of your necessities. If there is equity and you are safe having equity in all your properties I would keep them. I still believe in ‘bricks and mortar”
But if you have equity in some not others, talk to your Accountant and he will help you to choose the best way to go about it.
depending on your situation maybe better to sell one that will attract Capital Gains and sell the other which will have a loss. One will work against the other
and you can “walk away” from both with a small loss or no loss but you still can keep you sanity.
This little “talk” for this week email is based only on my own experiences and my own common sense. I don’t know what will happen over the next Month on the market but “does not look good”. If you have to sell take the “plunge” today. You may not have a better tomorrow.
There are a lot of buyers on the market looking for bargains because they can find them. They are astute, shrewd and very knowledgeable of the market. They have seen everything and they compare everything before they buy. They know the market better than us Real Estate Agents because they are searching and looking for all the properties available in their price range.
I love the Real Estate business and I will be selling properties until I drop dead and I urge all the buyers to purchase today because it is so incredibly cheap. Buy today and hold on for another 5 years there will be no loss only gain. Property is a long time investment. You must have heard that before.
If you have doubts what to do with your portfolio I suggest you contact your Accountant to give you advice. Don’t just make a decision on your own. Or talk to someone in the field like a Financial Advisor or a couple of friends that has investments and they a have a bit of “clue” what to do. Good luck!