Advice for property sellers who don't want to be surprised by the vagaries of the market - predictability is not its strong suit. The first tip is to consider what will happen to your budget if interest rates increase. For example, if interest rates jump 1%, what will be the difference in your monthly payments? That's why it's important to run detailed calculations and talk to banks to understand the possible scenarios.
Determine also the liquidation price. Imagine you need to sell quickly. What would be a realistic price for the property? Don't forget the potential loss. In down market situations, how much loss are you willing to take? Plan carefully, considering not only the financial but also the emotional aspects.
Then determine the period you can wait before selling. If the market goes negative, how long are you willing to wait before deciding to sell? Be realistic and analyze the situation carefully.
And don't forget the maintenance costs of an empty property. Taxes, fees, maintenance - it all adds up. Finally, be creative when selling. Instead of lowering the price, consider adding value to the property. Consider renovations, furnishings or other such actions that would catch the attention of potential buyers.
Enter regular reviews of your portfolio. Check the value of your property portfolio regularly and analyse current market trends. This will help you avoid unwanted surprises and adapt to changes in market dynamics.
Diversify your investments by adding different types of real estate to your portfolio, such as residential, commercial or industrial properties. This can protect you from significant losses in the event of specific problems in one segment of the market.
Build a risk management strategy. Define your investment objectives, risk tolerance and investment horizon. Create an action plan to address losses and changes in market conditions to ensure the long-term success of your real estate investments.
By following these strategies and tips, you'll be prepared for every possible real estate market situation.
