Real Estate Investor Magazine South Africa April 2018 - 100th Issue! | Page 28

INVESTMENT SERIES
6 First Time Investor Guide
PART
SHOULD YOU SELL YOUR INVESTMENT PROPERTY?
BY MONIQUE DU TOIT
A
decision to sell a long term asset such as a property can
sometimes be a challenging decision for an investor,
more so for a novice investor.
"Every property investor will be confronted with this ques-
tion at some point in their investment journey. Therefore,
knowing when to sell or hold your investment property is es-
sential when building a portfolio," says Praven Subbramoney,
CEO of Private Bank Lending at FNB.
"Due to the long-term nature of the property investment
journey, the general rule is that property should at least be held
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APRIL/MAY 2018 SA Real Estate Investor Magazine
for five to ten years to allow the investor enough time to study
market conditions and further assess the viability of their port-
folio," he adds.
Subbramoney unpacks some of the reasons why investors
end up selling their properties:
Exit strategy - some investors venture into property having
already developed an exit plan, which consists of selling the
properties and using the funds for alternative business inter-
ests.
Recycling equity - this involves selling a property and using