lesson I have learned of late

[bort]

i actually think andrew A's response makes the most sense.

i've sold 3 properties now over the years, and missed out on probably 100k in capital gains ... so was disappointed about that ... but then thought about it, and hang on .... i used those funds to buy shares and the next property, and earned a LOT more than that 100k capital gain lost.

so i think it comes down to, even if you did sell - what did you do with the funds? invested further elsewhere? made more or less money than you otherwise would have?

at the end of the day, selling any quality asset is going to look like a bad decision on paper as it will have a capital gain subsequent to your sale.... But provided you are still utilising those funds well, there's every chance you are doing as well or better than holding. (and at a minimum not losing the whole amount of that capital gain you have forgone)

 

[oc1]

so i think it comes down to, even if you did sell - what did you do with the funds? invested further elsewhere? made more or less money than you otherwise would have?

at the end of the day, selling any quality asset is going to look like a bad decision on paper as it will have a capital gain subsequent to your sale.... But provided you are still utilising those funds well, there's every chance you are doing as well or better than holding. (and at a minimum not losing the whole amount of that capital gain you have forgone)

Exactly. If you're playing the game and moving your money around constantly then selling isn't a bad thing. However, most are buy and hold type investors and i guess selling as least as possible will be the way to go (but shoot the dogs! )

Cheers

Oscar

 

[Brinkdude]

Hi Karina

There is an old saying that goes:

"You never regret buying a house, you only regret selling one."

I guess this is what we call experience.

 

[see_change]

Hi Karina

There is an old saying that goes:

"You never regret buying a house, you only regret selling one."

I guess this is what we call experience.

Not always

We sold to fund a development . I know at the moment if we hadn't sold , we would have had significant emotional and possible financial stress if we hadn't done that.

Cliff

 

[Simon]

Of course there are exceptions to every generalisation.

I believe (generally ) that to sell simply to take a profit is something which will one day be regretted.

Of course if you are reinvesting the funds in additional assets then it isn't such a big deal.

Hope you get my gist here. I lack the skill to express my thoughts well.

 

[Dazz]

I reckon the lessons change as you progress through the different stages of your investing career.

Early stages

Do not hitch up with a partner who is a spendthrift or retail therapist. You will never progress beyond mediocrity with that type of massive outflow of cash to get you started. Thankfully my wife is excellent on the defence side....as Dr Thomas Stanley would describe it.

Middle stages

Hold on to your equity base as well as you can.....don't sell. Leverage off your base to acquire assets that are out of the reach of most ordinary folk.

Later stages

Relax....go and find an enjoyable past-time that improves your health and well being and doesn't involve property. The portfolio will simply bubble away in the background supplying endless fruit for many generations to come. Don't tinker with it. Acquire more if you feel like it, but there is no longer any pressure or dire need to.

 

[Raddles]

HI there
I agree with you Simon - the only 2 times we have sold properties it was to rollover into something different.
We rolled over a PPOR in Glen Waverley Melbourne (which was being rented at the time) to fund another purchase in Canberra. We didn't regret the sale because the nature of the suburb was changing from a nice place to have the family home to a much denser - sell off the backyard scenario. We weren't developers and it was no longer our cup of tea. The property we purchased in Canberra ended up being destroyed in the Canberra bushfires in 2003 - and we also sold because we were underinsured and could not afford to rebuild 2 properties (we lost another one too) from a timeframe and cost point of view. We rolled over that property into another one in Toowoomba early in 2003 and that has easily doubled in price.
Can I suggest it is a bit like the glass half full and glass half empty scenario. If you look for the bad in a situation you will always see the bad - if you look for the good in the situation - you will see the benefits. People above have obviously learned how to crunch the numbers and are less likely to sell unless it makes sense to do so.
thanks

 

[Ahmad Azimi]

Hi Karina,

It's good to see someone who understands the game of property investing. Alot of people buy & sell which is kind of stupid because what differnce does it make if you Buy a property lets say in 2000 and sell in 2003 and then buy in 2004 and sell in 2009 compared to someone who buys in 2000 and never sells. You save so much money on CGT and agen'ts commission plus your property is still growing.

It's like you plant a tree and wait for it to grow. When the tree has grown it gives you fruit. That fruit is the Capital Growth. So why do you want to chop down that tree which gives you fruit? You can pluck the fruit and it will grow again but if you chop the tree it won't grow.

Buying & Selling is not really investing. I call it speculating. Alot of people say I'm an investor. If you ask them how many properties have you got? They will say ohhh none...I sold them recently.

Buying and Holding is one of the best stratergies of growing your property portfolio.

Regards,