After the strong run in property prices over the past year some property investors may be considering selling property within their portfolio. Here’s our list of what to consider when making this decision:

• Has the property performed in line with your expectations at the time of purchase? Or has it been better or worse than your expectations? As a general rule, selling your losers and letting your winners run is a prudent investment strategy which has served many well.
• Is your property negatively geared? If it is, the importance of long term capital growth is particularly high because owning the property is costing you money. In the absence of the required strong capital growth, this type of property investment may not align with your long term investment goals and may be worth considering to sell.
• Is selling the property aligned with your asset allocation goals within your long term investment plan? This is worth discussing with your financial planner. The key here is to remember your income and lifestyle goals at the time of investment.
• What will you do with the funds once you have sold the property? One of the best reasons to sell an investment property is when you believe you can make a better financial return elsewhere.
  Have you considered the tax implications of selling? Generally, Fifty per cent of all capital gains are taxable and will be added to your other income in the year you sell the property, so that creates an incentive to sell in a year when your taxable income is lower.

Landen’s Director Jim Dionysatos believes investors should carefully consider their position before selling an investment property: ‘Most of our clients are long term property owners and are still building their successful property portfolios rather than selling properties. However, there are a few good reasons to sell which investors should be aware of. Naturally, selling a property may make sense when owning it is no longer aligned with your investment plan.’