If you find that you have acquired an underperforming asset, it is probably time, to ask yourself some hard questions.

You probably have purchased a lemon if:

• Your holding costs are exceeding your rental yield and capital growth
• You are not able to make better returns elsewhere because of the costs, and you won’t be able to keep growing your portfolio, because of the lack of equity and rental growth.

Some of the reasons a property will underperform are, buying at the wrong time, paying too much, bad location and a poor property selection.

Here are 5 reasons to sell your investment property and consider if they apply to you:

• You still have a mortgage on your principal home
• It is underperforming and negatively geared
• You have other options for investing
• It’s causing you a lot of stress

If however, you don’t have a home mortgage and you rely on deductions you achieve through real estate, as part of your tax strategy, it may be a good idea to hold on.

Consider cutting your costs by using RealRenta & automatically manage your investment property.

You will never use a Property Manager again!