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Is your Investment Property Underperforming? Here’s how to tell

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If you suspect that your property investment may be underperforming, it’s time to ask the hard questions and conduct a very honest review.

Consider the following:

  • Is it performing to expectation?
  • Is it outperforming the market?
  • Would you buy the property again if it were on the market now?
  • Can you do anything to increase the return?
  • What are the chances it will outperform the averages for the next decade or so?

The problem with underperforming properties may be market related or specifically related to your property. The following reasons should be considered when making your evaluation:

  • If you bought your property at the peak of the cycle, it may mean that prices may remain static for a few years- or may even fall.
  • If you paid too much, you may also have a few years of no capital growth
  • Your suburb as a whole may be underperforming
  • The property itself may be the wrong type of property

If you decide to sell, consider selling at the end of the lease term, to broaden its’ appeal to both investors and owner-occupiers.

Join the growing number of smart Aussie Property Investors who are cutting out the middlemen and seeing the return on their investments sooner.

Download our new Free eBook on Property Investment here: http://info.realrenta.com.au/download-our-new-ebook-0 

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Marlene F Liontis