Monday, 21st December 2015
Firstly don't go into selling mode - this is when a landlord starts to think "Well if they want to buy it, that means we don't have to replace, repair or do whatever maintenance is needed in the property."
It's also easy to start contemplating what the property is worth, but you need to take a step back.
Re visit your 'why' and go through all the reasons you bought the investment in the first place.
This property may be a part of your accumulation stage (where you are building a portfolio), or you may have purchased on a whim and really didn't have a plan at all.
If your tenants are giving you the indication they want to buy, this may mean a couple of things. It might just be that they love the area, their kids are happy at the local school, or they've found the perfect job in the area.
But don't let their reasons to want to buy sway you from your investment property plan.
If you've had the property for a while and don't have a recent value, it would be a good idea to arrange one anyway - this will help your decision-making process.
Talk to your accountant too. If the property has increased in value, you will need to know your Capital Gains Tax obligations.
Perhaps the property is giving you great returns and will continue to do so, but you might discover that it's actually costing you too much money to service and it's not worth holding.
Remember it is your decision, not the tenants. Gather the information you need to make a decision before doing so.
PS If you need help with investment property decisions, contact me for a Destination Freedom Portfolio Evaluation - details here.