If we pay careful attention, we can realize a few truths…
The visual below is one which we are all familiar with. When the Cane is fresh and juicy, it gives more juice and it is also easier and cheap to extract. At some point however, when the cane is fed back repeatedly, it yields lesser and lesser , takes more effort. There is a trade off between getting juice and the cost.
Similarly, when we make our investments, if we pay careful attention, we can realize a few truths.
1. The property which you bought at a good price and appreciated well in the beginning.
2. You are feeling good about your decision.
3. However, when you look at recent trends, you realize that it has stopped gaining in value and sometimes it also loses value.
4. It is time then to sell it , if there is no Juice left in it.
5. Although, we dread the transaction process, it makes sense to sometimes sell the real estate, pay your taxes and deposit the money in the bank.
6. The Capital gains amount is reasonable and if you hold a property for five years or more, after indexation , the rates are really low.
So sell if it makes sense. Liquid amounts in the Bank is very welcome especially given the uncertainty that surrounds investment in other avenues
Courtesy: Prakash Natarajan
Realty Gyan: firstname.lastname@example.org 9820606187