I get this particular question a lot based on an almost, sensible chain of thought.
There can be good reasons to sell up but there are also not such good reasons.
Good reasons to cash up your investment property can include
- You think an income drop approaches so you prefer to lower debt(can also be a bad reason – see below)
- You feel you would like a different type of investment – this could include a higher yielding property or something with sub dividable potential
Not such good reasons can include
- More of an outcome than a reason; deposit requirements are changing or nature of income changes – which means that less borrowing is available for the next move after sale
- You feel like speculating on which areas might do better – this is not always possible to do over a long time frame
- You feel like the house has made enough money and you feel like it can not possibly ever be worth more then after selling decide to buy a fairly similar property
