Real Estate: The Benefits of Selling at The Right Time.
Every owner is different, and everyone has their priorities when investing; but the seemingly universal truth is that no matter who you are, your end goal is probably selling. Few things compare to the feeling of reaping the results of your investment and reaching your goals.
With that said, it's obvious why realtors always keep an eye open to see when the best moment to sell will come. Selling at the right time is, after all, as important as picking a fair price.
But, how does this apply in specific to India, and why is it especially important to know exactly when to sell as an NRI?
The End-All-Be-All: Why did you invest in the first place?
Your goals are only yours, and knowing them by heart will help you align every decision you make, which will, therefore, tell you if it’s the right time to sell.
For example, let’s compare two distinct types of NRI (and properties).
- The investor: This type of NRI often reaps the benefits from their investments when they’re at a market top, and quickly reinvests the profits in properties that will soon appreciate. Because of this NRI’s goals, the benefits will be a good reinvestment, and the best moment to sell will be when their property is performing better relative to the market.
- The inheritance owner: NRI’s that inherited properties in India often just want to sell them at the best price they can. Because of this, they’ll often see the transaction for its pure monetary value and will sit on their property so it can appreciate, and sell as soon as it’s not.
- For this NRI, the benefits are more money, and the best moment to sell its when prices are at their highest.
These examples show that having a clear plan of what your intentions are with money makes a huge impact on what benefits you while selling. Which leads us to another big point:
The market moves in cycles: A History lesson
Real Estate investor Tony Alvarez says he’s made a fortune just selling high and buying low, and claims to know by heart how the market will next perform. While it’s true that everybody would like to sell high and buy low, let's see how that’s worked for Indians in practice:
The year 2007 was the all-time best year for Real Estate in India, and 2016 was second best. There were 9 years of mixed opinions in the meantime, all of them lead by popular voices warning against a market bubble similar to the one that exploded just around the time in the U.S, in 2008.
Once the waters cleared it seemed like, while the market was optimistic, there was still some reticence from investors, that wasn't that actively participating at the start of 2017, and are now making a quick comeback as new developments all over India raise optimism.
Another key factor for NRI’s: NRI’s themselves
It’s no secret, as well, that NRI’s are more than ever actively participating in the Real Estate market. With platforms such as Reobee that help them make deals directly within their own demographic and within their own rules set in place to foment expat investments; the market is expected to keep growing, and properties to keep appreciating all over 2017.
The end goal, after all, for any investor is to make money, so rising demand is always good as it opens the opportunity of selling for high profits before the market itself automatically resets the cycle. Keeping an eye open for change-drivers such as new regulations, people, and social projects coming in will, because of this, always be a promising idea that’ll benefit those that already possess properties.
We hope this information has been useful for you, and that all the decisions you take help you move towards your objectives.
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