When Is It Time To Sell Your Property?
There are a number of reasons as to why someone might be tempted to sell off their rental property in Killeen or Central Texas. Ultimately, it tends to come down to the desire to simplify one’s life. You may have income streams that serve to make the need to own and maintain a rental property irrelevant. You may simply be tired of dealing with the stress that is sometimes inherent in owning a rental property in Killeen or Harker Heights, even with a good management company based in Central Texas in your corner.
Regardless of your reasons, when it comes to selling your property, there are certain times that are more ideal than others.
The Best Times To Sell Your Rental Property
When it comes to owning and maintaining a rental property in Central Texas, the temptation is to hold on to the property for the rest of your life. After all, land is not limitless, but the need to have a place to live is limitless.
However, at the end of the day, you’re going to get to a point in which the benefits of selling take precedence over everything else. When you begin to think along those terms, you’ll want to consider the following scenarios for selling:
- When the depreciation benefit comes to an end: Depreciation refers to the non-cash expense that all rental property owners can take. Accelerating your depreciation is one option, but straight-line depreciation remains the most popular approach. The formula breaks down to determining the building value, which involves subtracting the purchase price from the land value. From there, you’re going to divide that figure by 27.5, which will then give you the annual allowable depreciation deduction.
- When it becomes possible to access your 401(K) or IRA: This can happen at age 59.5. Hopefully, by the time you reach this age, you will have a decent amount of capital stored up in either of these options. If you do, and you get to the point in which there are no fees for early withdrawal, it might be time to sell off the rental property.
- When you start picking up Social Security and Medicare: Although you can begin to collect these things as young as 62, most people tend to wait a little longer than that. Chances are, by the time you’re about 65, you’ll be ready to simplify your life to a significant degree. If you find yourself in a position of being able to collect from a reliable, strong revenue stream, then it might be time to sell off your property.
Contact Gloria Ashmore located in Killeen and servicing Copperas Cove, Harker Heights and Fort Hood by clicking here.