According to Tim Leysen, a lecturer in real estate studies at Odisee University of Applied Sciences and a real estate consultant at ABN AMRO, one question most often asked is, “How and when do I best sell my investment property?” There is no simple answer, as it depends heavily on the terms of purchase. What did you pay for the property at the time? Have you accumulated a capital gain in the meantime? These factors largely determine the ideal time to sell.
Independent real estate coach Ivo Van Genechten thoroughly cites exit strategy as an important phase for many investors. This includes the moment when you decide to sell part or all of your real estate portfolio, for example upon retirement or when transferring properties in a tax- and family-friendly way to the next generation. “An investor who started at age 25 will have a different strategy than someone who didn't get into real estate until age 50,” he said.
Optimize real estate portfolio
Another strategy when selling real estate is to optimize the portfolio, and you do this best by strategically selling properties and reinvesting the proceeds. “I call that the rebirth strategy,” Van Genechten clarifies. Cost optimization plays a crucial role in this.
The longer a property is held, the less the acquisition costs, which, with registration fees, very quickly reach 12%, start to weigh. This is why investors often hold their property for between 13 and 17 years to spread these costs. Moreover, new construction or major renovations come with a 10-year warranty period, which means low maintenance costs in the first few years. “Many investors choose to sell after this period,” Van Genechten said.
