A recent Sydney auction has cleared these assets for over eighty percent on average. There is no doubt that Sydney is currently a buyer’s market, with housing values rising to new all-time highs. It may be tempting to put your house on the market today for a good price, however the professionals say that selling your house should be the last resort.
Zaki Ameer is an expert in investment real estate, a writer, and the founder of DDP Property. He has built up a portfolio of ten residences worth $3 million in just a few short years and continues to accumulate wealth.
Zaki founded DDP in 2011, an assets funding and methods company, after developing a passion for helping others. Following an asset sale that was not appropriately timed, Zaki has counseled countless individuals on how to proceed the next time they find themselves in the same position.
If you have to sell your house at all, that is the last thing you have to think about. When you need to sell, however, you should keep the following things in mind:
What will be your capital gains tax?
It is a good idea to estimate the amount of capital gains tax you will owe before you sell your house. You calculate CGT on the difference between what you paid for the asset and what you received once it was sold. Depending on a variety of factors, it may be a substantial amount that reduces your earnings margin significantly. Most people are only aware of CGT after the sale, which results in them paying substantially more than they expected, causing the sale to be unprofitable.
What are your plans for the income?
Consider selling your home to direct the cash towards another venture; however, only do that if you plan to use the money to further your home portfolio or invest in a new business venture. In the long run, if you keep the assets, you should make sure your investment would be much more profitable than if you kept them.
Is there anything vacant in your portfolio?
Selling your own home should never be the last resort, but if it has been vacant for more than a month then it shows a poor investment. When this happens, you need to move onto an investment to boost your profits.
Today’s market performance.
In a few major Australian cities, property prices are reaching record levels, so if you’re considering selling, now is the time. It is important to never ever remember promoting at a low point in the market. It may even be to your advantage to look at current demand in your desired suburb, as a higher price may be possible if there is more demand for your home in that area.
Equity is the value of your mortgage.
Home equity is the difference between your home’s market value and the mortgage you have on it. A mortgage equity can be put to use for a variety of purposes, depending on your financial situation and the lender’s approval. You could recall selling if you have been doing that for some time and no longer have any extra equity, since the mortgage will become more expensive as a consequence of the lack of equity.