With property values having surged during the pandemic, now might seem like an ideal selling opportunity. Is it time to stick or twist?
Figures recently produced by Hamptons show that people who sold properties in 2021, having bought them in the last 20 years, made an average of £95,000 profit. The range is wide of course, with those having bought earlier having made far more.
For most sellers, this does not mean a cash windfall. Most of the gain will have been put back into the property market as their next home. Not so for all property investors. Some will have reinvested in another property, others will have exited the market with a healthy bank balance.
Selling when the market is hot may seem like a good move, but when looking at the long term performance of the property market, the longer you stay in it, the more you will make.
Rather than react to short term moves - in property, a year is very short term - it may be a good time to revisit the original objectives.
If the original goal was to make a capital gain over a period which broadly coincides with the recent price surge, then yes, now might be a great time to sell.
If however, the objective was over a longer term or involved generating additional or retirement income, staying with the original strategy is likely to serve well. The fundamentals of the UK property market remain strong. Stick with it.