My Property Investment Tip #15

My Property Investment Tip #15

Never Sell!

Now this rule is more of a philosophy than a hard and fast rule, as it should be thought of BEFORE you even buy a property.
Now first of all, when you sell you go backwards. Assets make you richer, and if you’re selling, you’re reducing your wealth creation ability, not increasing it.
When you sell you ‘kill the goose that lays the golden eggs’. You ‘chop down the apple tree’. You slaughter the dairy cow. You will realise a lump sum from the sale, but you will NEVER make a dollar from that property ever again.
Also, perhaps more importantly, when you sell the tax man gets you! (except if you sell your own home)
When you hear about the ‘old money’ families, where do you think that old money comes from? It comes from NEVER selling. They acquire real estate and then keep it in the family for generations. In fact, it’s a great shame if you ever ‘sell the farm’ because you have failed to retain the family’s assets from careless management. Many wealthy families will even exclude family members who can’t be trusted with money from managing the family estate.
So when you buy, you should be doing so with the intention of never selling. Set the property up and get it paying for itself. As time goes by, it’s income will outstrip is bills and you’ll have a passive income… forever.
People sell because they don’t understand how to get the money out of the property. But there are ways to get money out of a property without selling. If the property is going to receive rent forever, it can therefore service an amount of debt forever. So rather than sell, just refinance it and let the rent pay the new loan off in time. Way better than selling and losing all possible future capital growth.
The only time it is acceptable to sell, is when you are either:
1. Fixing a very bad property purchase.
2. Or upgrading the asset to a better one.
In all other circumstances, selling means you’re going backwards.
Never sell.
Selling is the only way to guarantee a loss. Be patient and let time work its magic.
The older you get, the more you’ll regret any decision you made in your past to sell a property.

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Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.