Holding back property is not only an important thing for the property investor but the person living in the same structure must also have the knowledge about the considerable factors that affect holding back of a property.
Tenure for holding Property
Property for sale should be held back for a period of not more than 4-5 years. The time span of 48-60 months is enough to compare the market price, property trends, value appreciation and the locality impact on the sale of a property.
Another important thing to consider is the sheer understanding of the users demand and there budget. In fact, the buying time is the best time to sale a holdback property.
Factors to Consider while Holding Back a Property
- Property trend and Price – First things come first thus the equation between the current property price trend and actual cost that a buyer is willing to pay should be considered while holding back a property. Also, evaluation of property value of the same unit in the locality reflects in the time of holding back property as selling of an asset should give a wise Return on Investment [RoI].
- Consistent Property Market – This factor also reflects on the period of holding back property as a non-incremental trend in the real estate market is not a good sign. Similarly, the regular fluctuation in the property market is not an ideal situation to hold back property as the person is suggested to sell the asset in case getting a smart opportunity. In short, the idea to hang up for an outstanding deal is not a good idea in an unstable market.
- Lower Rental Incomes – The decrease in rental amount is the time when you must not wait for a better opportunity and should leave the idea to hold back the property. The lowering rental amount indicates that the people are no more attracted to the locality and thus hoping for a hugely profitable property selling deal is a wrong thing.
- Urban Infrastructure – The currently-existing infrastructure, proposed development and the neighbouring localities of the area act as the deciding factors about holding back a property. The property market showcases upward movement every time the work on the infrastructural projects begins and thus waiting for a moderate time for the sale of a property is not a bad option.
- Maintenance Cost – This value also plays an important role in fixing the holdback time of a property as a prospect definitely thinks about maintenance cost he/she would bear annually even after buying a property.
- Construction Stage – The property value largely depends upon the stage of construction, like the pre-launch, under-construction, roof level completion of construction and ready to move in. All these stages set the property value and thus buying offers according to all these should be considered to hold back a property.
In short, the cracking of a property selling deal at the right time while keeping all the above-mentioned points in mind is the right way to hold back a property.