Praven Subbramoney | Private Bank Lending at FNB
A decision to sell a long term asset such as a property can sometimes be a challenging decision for an investor, more so for a novice investor.
“Every property investor will be confronted with this question at some point in their investment journey. Therefore, knowing when to sell or hold your investment property is essential when building a portfolio,” says Praven Subbramoney, CEO of Private Bank Lending at FNB.
“Due to the long-term nature of the property investment journey, the general rule is that property should at least be held for five to ten years to allow the investor enough time to study market conditions and further assess the viability of their portfolio,” he adds.
Subbramoney unpacks some of the reasons why investors end up selling their properties:
This could also have been the investor’s former place of residence, which they decided to rent out after moving out.
“There are many circumstances and underlying factors that may lead you to consider selling or holding your investment property. The decision should ultimately be based on your current circumstances, investment strategy and what you aim to achieve,” concludes Subbramoney
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