What factors to sell?

Just wondering what factors everyone take in to decide whether or not to sell an IP or not? How long generally do you guys give for it to proof if worth holding further or not?

 

I generally sell properties where have had some significant gains, and market is close to peak and know it wont be cash flow positive to hold.

I am sure if you have any lemons it would be a GET RID OF IT STRAIGHT AWAY, especially if it is bleeding you

 

I look at the return. How much is it costing to hold or returning as a surplus?
If the return is negative, can I afford to keep holding?
Then I look at the performance of the property over time, has it increased in price?
Then look at the market, is it a good time to sell?
Then ask yourself, if I sell, what will I do with the money?

I have sold 2. The first the strata manager started becoming troublesome, my tenant moved out and it was negatively geared. I checked the market and it was a good time to sell, so I sold it.

The other one was simply a negatively geared development site. I had no plans to develop so I waited for the market to show signs of topping out and sold near the top (at the time). Of course over the next 2 years the market in the area dropped and rebounded again. Sometimes its better not to look! By then I was nearly completed the project that I bought with the money from the sale, so all good.

Still, both times I walked away with cash in my pocket. Both good sales and good timing. I am happy with my decisions.

 

So am looking at one in ADL, hold for 8 years, positively geared, but only about 15% - 20% growth. Potential to subdivide to semi detached, walk to station and supermarket. Just not sure to give up and look somewhere else or keep waiting. It's so slow in ADL....

 

It might be slow in ADL but will it be much better anywhere else in the next year, 2 years, 3 years? If you sold, where would you put your money?

Another consideration is developing now. Have you run numbers to see if it is feasible? You haven't provided much info but from what you have said it's not an automatic "sell" to me.

 

I have never sold a property.

I cannot time the market properly and I baulked at transaction fees for selling and buying.

I think cycles come and go but I ride them without lots of transaction costs.