When is the best time to sell an investment condo? I can’t tell you how many times I’ve been asked this question.
It’s natural to want to maximize your profit. But let’s face it, you can’t time the top of the market. Even the savviest investors can’t pinpoint the exact moment to sell for the best possible return. What you can do it minimize your risk. And there are times we just have to cash out—despite the potential for further benefits.
From market trends to personal circumstances and everything in between, there are many reasons why sellers might choose to list their investment units. If you’re deciding whether to sell, the answer isn’t cut and dried. Having said that, there are a few situations where you might want to strongly consider putting your unit on the market. Here are six such occasions.
1) The financial benefits are in question
Before you bought your property, you did your research and crunched all the numbers. Based on the information you had at time, the purchase made good financial sense. But things don’t always turn out the way we expect, and now you don’t feel like you’re being adequately compensated for your risk. Maybe you’re not. If you’re seriously questioning the monetary benefits of owning your condo, it may be time to reevaluate your cash flow, your cap rate, and the overall financial picture as it relates to your investment.
2) You need the equity
Life can be unpredictable, and there are times when you just need to get your hands on some cash. Perhaps you were laid off unexpectedly. Maybe a relative is ill or in need, and you have to help them through some tough times. Whatever your reason for needing money in a hurry, freeing up the equity in your investment condo might be the best way to get it. Selling under these circumstances can be disheartening, but there’s always the possibility of getting back into the market down the line.
3) You have a better use for the equity
This point is directly connected to the previous one, but it’s definitely worth mentioning. A lot of investment property owners are true entrepreneurs. It’s often that enterprising spirit that leads us to move from one opportunity to the next—or even start our own companies. Let’s say that putting money into your own business, along with making some small investments in equity markets, will likely provide a better rate of return than your condo for the next couple of years. If you find yourself in this situation, selling might just be the best decision you can make!
4) You’re managing the property remotely
What happens if you have an investment condo in Toronto, but you’re moving out of the city? Being a remote landlord can come with challenges. But in many situations, it’s very doable. Partnering with a local property manager will allow you to continue renting out your unit (in fact, the right real estate agent might even be able to help you out). But if you’re the hands-on type, you should seriously consider whether you’ll be comfortable with the distance. If the answer is no, you may want to consider selling.
5) You want to reenter the market later on
Perhaps your investment property has appreciated well, but you’re seeing some small changes in the market and think it might be a good time to cash out. You don’t have to be headed for disaster to make the decision to sell—especially when there are a lot of new potential opportunities coming your way. In Toronto, an influx of new units is currently scheduled to come to the market in the next couple of years. You can always sell now, and keep an eye out for the right condo in the near future. Of course, prices won’t necessarily decrease. With all the newcomers in Toronto (not to mention our job growth), all of these units may be absorbed easily into the market.
6) You just aren’t as interested as you used to be
Are you still wondering, should I sell my condo? Perhaps you can’t come up with a great reason to put your unit on the market, but you just have a feeling that it’s time to do so. If you’re not getting much enjoyment out of condo ownership (and you’d rather not deal with having a tenant anymore), it might be time to sell. Use your money to travel. Wait for a new and incredible investment opportunity to pop up. Do whatever you want—after all, investing should provide you with more freedom, not less.
These are just a few of the situations when deciding to put your unit on the market might be the appropriate choice. But whatever your reason for selling, one thing is certain: a real estate agent with Toronto condo market expertise can help you get the highest price possible.
Thinking about selling your investment condo? I can answer any questions you might have about the process—and help you meet your real estate goals. Call or text me at 416-500-5360, or send me an email at rashid.notash@rogers.com and ask away!
