This is particularly true in London and some regions in the south, where prices peaked in the summer of 2014 and have stagnated ever since. While this should not detract from wider or longer-term growth, investors who hold property in these regions may need to act fast if they are to monetise their assets and maximise value. Consider the following steps towards achieving this:
Lease your Properties
If you hold more than one property, you may wish to consider the benefits of entering the buy-to-let-market. Leasing enables you to generate income on a monthly basis, while retaining ownership of the property for the future. The buy-to-let market also moves to a different beat to the rest of the sector, so rental values may increase while sale prices fall. This has certainly been the case recently, where residential rates increased by 2.8% in 2014 and are now 16% higher than at any point in 2010. So if you have a property that is losing value, consider maximising its short-term profitability by leasing it to a private tenant.
Maintain Perspective and Eliminate Greed
Sometimes, the most obvious solution is also the best one. If you need to monetise a property that is rapidly losing value, your best option is simply to sell this for as high a resale price as possible. This only becomes an unviable option if selling the property would incur a loss, or in instances where you are already encumbered with negative equity. Otherwise, you may need to maintain perspective and eliminate greed, by selling for a healthy profit without holding out for the type of disproportionate growth that gripped the market last year. This rate of growth is unlikely to return anytime soon, so manage your expectations and consider each potential deal on its own merit.
Sell on the quick House Sale Market
For those who are already faced with the prospect of losing huge sums of money on their property, it may be time to cut their losses and sell as quickly as possible. The quick house sale market is perfectly suited to meet this need, as while you may be forced to accept a price that is below market value you can complete a favourable transaction in a matter of hours. So by partnering with firms such as Property Rescue,you can minimise any potential financial losses and quickly rid yourself of a fast depreciating asset.