Keeping a real estate for a lifetime is a good thing, but there are indicators that might force you to sell your property business. Those indicators might not be clear at first, but they can come up, and they will often force you to sell your estate out. selling a real estate is not a recommended action, especially if you are planning on investing for a long time. There are several things that can force you to sell them, though, and most of those things are things that can happen to you anytime soon.
While there is no way of ‘countering’ these causes, you can read this article to prepare yourself about them. By knowing them, perhaps you can mitigate some of the damage before it is done on you, hence reducing your chance of getting bankrupt because of some freak incident. Without further ado, let us begin with the first cause:
When there is something major happening to you or your family
The first cause is the most imminent of causes on this list. Major things in life include deaths, childbirth, marriage, relocation, sudden layoff, et cetera. When all of those things happen, you will either be losing your primary source of income (if you got laid off), or you will lack the income to support a new family member (in case of childbirth or adoption). When those things happen, you might want to start selling your real estate to cover any present or future expense.
When you finally found a better passive income
A passive income is an income that comes passively to your wallet. Passively here means it will come to you without you doing anything more than investing in it. Compared to an active income, a passive income is an income with lower risk (depends on your investment and what kind of job you are doing actively) and a lower return. The good thing about passive income is that you do not need to do anything to make money; all you got to do is to keep a watchful eye on your portfolio and you will earn money passively.
Real estate is a source of passive income, especially if you are renting it to someone else. It is a passive income that can pay well, but that does not mean it is the best-paying passive income out there. Compared to other passive income ‘generators’, owning a real estate requires you to do lots of works (you might need to face the tenants, fix broken things, and many other). Other investment vehicles such as real-estate crowdfunding or even peer-2-peer lending are better alternatives in the long run.
Last but not least, when you are no longer sentimental of your real estate
If you think this is a joke, then you are half-right. Sentiment is not exactly a thing to keep around when you are investing in something, but there are times when you are feeling sentimental about your real estate. Perhaps you have fond memories of that place, making you unable to sell it. There will be times when you will feel jaded of it, though, and that is the time when you should be selling it (especially if it does not provide you with sufficient income). Might not be the thing that will force you to sell your property business, but we want to include it here because there are people who are dead sentimental about their estates (when in turn, selling them can lead to a higher profit for them).