A holding decision should compare the property’s expected net contribution with your current financial needs and alternatives.
Assess the holding position
Review rent, vacancy, finance, insurance, rates, levies and likely repairs. Consider upcoming building work and whether the property still suits your risk tolerance. A rising estimate of value does not provide cash to pay the next bill.
Calculate a realistic sale outcome
Estimate the sale proceeds after outstanding debt, agent and marketing charges, conveyancing, discharge costs and applicable tax. Ask for quotes and tax advice. Compare a realistic price range rather than relying on one optimistic appraisal.
Price the replacement separately
If you intend to buy again, include duty, inspections, legal costs and relevant loan expenses for that purchase. Do not confuse the cost of selling the current property with acquisition costs of the next one. Compare the after-cost funds available for each option.
Test the alternatives
Consider keeping, repairing, refinancing where appropriate or selling, with less favourable rent and price assumptions. Neither holding forever nor selling quickly is a universal rule. Development and subdivision also need approvals, funding and a viable budget; a planned improvement does not guarantee a profit.
