Should I Cash Out?
Is now a good time to sell my rental property?
Good question. Aside from the obvious factor of financial gains, there are a number of other reasons why now may be a good time to sell.
1) Financial – The most obvious, selling your property will inject a (hopefully) large amount of funds into your bank balance for you to do with as you please.
2) Stress – You could be one of the lucky ones whereby your property and tenants simply get on with it, rent is paid on time and the property is looked after. This isn’t the case for every landlord however and yes this is can sometimes be down to landlords themselves taking their eye off the ball, crossing their fingers and hoping things rectify themselves (this could be a tenant not paying rent or a leak on a roof)
3) Asset Management – It may be time to re-evaluate how your investments are placed. Are there other investments out there which do not tie up such a large amount of money in one transaction? Would smaller investments pay greater dividends (there are certain trending investments out there at present including cryptocurrency, stocks and shares and even Whisky)
4) Age – No pointing any fingers, you’re only as old as you feel…. But… given the strength of the market, would now be the best time to realise that long term investment and book that cruise or buy that car?
5) Tax – Less than the basic rate threshold of £12,570 – you’ll pay 0% in tax on rental income. Above £12,570 and below the higher rate threshold of £50,270 – you’ll pay 20% in tax on rental income. Above £50,270 and below the additional rate threshold of £150,000 – you’ll pay 40% in tax on rental income.
6) Plans – The property simply does not fit your lifestyle and may be a burden to you, having to keep an eye on it intermittently or more often than you’d planned.
7) Agent – You may have come across an agent *cough BARTRAMS cough* that has the foresight and experience to tell you whether now is the right time for YOU to be looking at selling that investment.