IN SUMMARY
Just because your property investment strategy suited you five years ago doesn’t necessarily mean it still suits your goals and circumstances today.
With the current cost-of-living pressures and several interest rates rises this year, some Queensland investors are really feeling the pinch.
If that sounds like you, now’s a great time to review your property investment strategy and figure out whether your existing portfolio is still moving you closer to your goals, or whether your priorities may have shifted since you last looked at everything.
Lately, I’ve been speaking with more and more investors who are all asking the same questions:
- Should I keep holding?
- Is it time to sell?
- Should I make another move in the current market?
My answer is always: don’t let pressure or uncertainty make the decision for you. Start by reviewing your strategy and getting a clear understanding of where you stand and what you can afford to do.
Why your property investment strategy isn’t set and forget
When I’m helping a client buy an investment property, one of the first things I want to understand is their timeframe.
What are you ultimately looking to achieve and by when?
It’s easy to forget, however, that the answer to that question can change over time, especially as your life, priorities and circumstances change around you.
You might have bought a couple of investment properties and continued to rent when you were younger and single, but now you might be married, looking to start a family and ready to stop renting and buy a home of your own.
This is where a strategy that was working well ten years ago might need a rethink.
And the reality is: when you buy an investment property, you’re not marrying it for life. You’re buying it to help you reach a goal.
If that goal changes, it’s only right to question whether that property still forms a part of your long-term plan.
The same thing goes if external forces like interest rate rises are starting to put more pressure on your financial situation.
When the pressure starts rising, have a look at your holding costs first
Reviewing your property investment strategy doesn’t automatically have to mean selling a property. Sometimes, the quickest wins can come from reviewing the costs of holding what you already own.
1. Review your property management costs and service
Look at what you’re paying for your property management, as well as the value you’re getting out of it. You may be surprised to find you can get better service for less somewhere else. At Worth Property Agents, we treat your investment as if it were our own asset, not simply another property on our database.
2. Review your finance and loan arrangements
If you haven’t reviewed your loan for some time, it may be worth asking a mortgage broker whether your current arrangement is still competitive. Fees, features and interest rates change frequently, so refinancing may be a good way to save costs, depending on your unique circumstances.
3. Look at insurance premiums and other holding costs
It’s always a good idea to check your insurance premiums, maintenance costs and any other running costs regularly. The aim here isn’t to cut corners or leave yourself vulnerable. It’s simply to understand what it’s costing you to hold your property and whether any of those costs can be reduced.
Selling can ease the pressure, if done for the right reasons
It can also help to set a few review triggers ahead of time as part of your property investment strategy.
You didn’t get into property to struggle.
If repayments are putting you under real pressure, selling may be one option worth considering, if it’s done with the right goal in mind.
Say you’ve built equity in an investment property, but your home loan is stretching the household budget. Selling that investment could potentially help you to pay off a chunk of your home loan and ease some of that pressure, depending on your goals, circumstances and the costs involved.
That doesn’t mean selling is always the answer. Before making a decision, consider:
- Your goals: Does the property still do the job you bought it for?
- Your position: Could you cover the costs if rates rise again?
- Your timeframe: Are you looking one year ahead or ten?
- Selling costs and tax: Speak with your accountant before making any decisions.
If your circumstances change financially or the cost of holding the property moves beyond what you’re comfortable with, that can be a prompt to revisit your strategy rather than reacting under pressure.
Ask yourself: Is there a new opportunity with current market conditions?
Reviewing your property investment strategy isn’t only about deciding whether to hold or sell what you already own. It can also help you recognise whether current market conditions create an opportunity that fits your existing plans.
For example, there’s a lot of great value properties on the market right now. If you’ve been thinking about upsizing or adding another property to your portfolio, now might be the ideal time.
But these kinds of opportunities only typically become apparent when you take the time to review where you are, what you’re looking to achieve and what you can afford to do.
The point here isn’t simply to make a move just because the market has shifted. It’s to understand whether that shift has created an opportunity that genuinely fits your strategy.
For more on local market conditions, read my take on what’s really happening in the Queensland property market.
The key is to regularly assess your property investment strategy against your goals
You don’t need to know what the market will do next. You just need to maintain a strong understand of your current position and what you want to achieve.
Start by asking yourself:
- What am I trying to achieve?
- Has my financial position changed?
- Can I comfortably hold this property?
- Does it still serve the purpose I bought it for?
- Are there costs I can review before making a bigger decision?
The right answers will ultimately depend on your circumstances. Someone with a long-term timeframe and manageable holding costs has a better ability to maintain course, as opposed to someone feeling the pinch and struggling to make repayments.
That’s why your property investment strategy should be reviewed periodically, not only when things become difficult.
Remember, a strategy review doesn’t automatically mean making a change, but it can help you understand which options are worth considering right now.
FAQs about your property investment strategy
How often should I review my property investment strategy?
Review it when your goals, circumstances or holding costs change. A periodic review can also help you check whether your property still fits your plans, even when nothing significant appears to have changed.
What costs should property investors review?
I’d start with the major ongoing costs, including your finance, property management, insurance and maintenance. You’re not necessarily looking for the cheapest option in every case. It’s about making sure you’re getting the best value and aren’t paying more than you need to for the service you’re receiving.
Can a Buyers Agent help review an existing property strategy?
Yes, particularly when you need to understand the property side of the decision. At Worth Property Investing, I can help you look at where your property sits in the current Queensland market, what it may be worth and how that fits with what you’re trying to achieve. For financial, tax, legal or lending advice, you’ll still need to speak with the appropriate qualified professional.
How do I know whether to hold or sell an investment property?
I’d go back to why you bought it in the first place. Is it still doing what you wanted it to do? Can you comfortably hold it? Have your goals or circumstances changed? There isn’t one answer that works for every investor, which is why we start at Worth Property Investing by looking at your property, your timeframe and where you want to end up.
Review your property investment strategy in Queensland with Worth Property Investing
At Worth Property Investing, we take the time to understand where you are now, what you’re trying to achieve and whether your existing property still fits your plans.
With more than 25 years of experience across Queensland markets, including Brisbane, the Sunshine Coast and Hervey Bay, my approach starts with assessment, not assumptions. I look at the property, its current market position and the options worth exploring before you make your next move.
Here’s how I support you:
- Review your existing property and where it sits in the current market
- Assess comparable sales and local market conditions
- Discuss whether your current property strategy still aligns with your goals
- Explore your property-related options, whether that means holding, selling or considering another purchase
A change in your circumstances doesn’t automatically mean you need to change your property strategy. But it is a good reason to review it.
Simon Read – Worth Property Investing
Please note: This article is not to be considered financial or investment advice and is not intended as financial or investment advice as it does not take into account your specific circumstances. For specific financial or investment advice, speak to your financial advisor.