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If you’re the current resident of a property and you want to sell it, since the market is soaring and you’re property has nearly doubled in value, you still have to find a property to move into, right?
So market conditions that were once in your favor have a different look from the buyer perspective. The tables are turned as they say. So, even if the market is going up and you can get a good price if you sell one property, you then will have to buy another property to live in, that's mostly likely gone up in value as well.
As an investor, which seems like common sense, don’t sell a property unless there’s another property that will earn more money via cash flow, depreciation, or the appreciation aspects (property is in a growing area). Investors don’t sell just because the market is way up, because there’s a push and pull in the industry, and the market will go up again and then down again. Most investors hold on to properties through the ups and downs and keep properties that are cash flow positive and beyond.
To counter act or take advantage of the high market, have a plan well in advance, if you'd like to sell a property. If you only have only one residence, is there a condo you also own where you can stay for a while? This might be a good idea of your a new investor, sell while the market is up and stay in a smaller condo for a period of time. Then you can buy a larger property when the market goes back down or balances out.
Also, in order to exhange a property the property has to have been a investment property for at least a year. So, a 1031 exchange, where you delay paying capital gains taxes, is also something to keep in mind.
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