Lets say you own an investment property … where ever …
If you were retiring how quickly could you sell it and why? …
If you needed the cash in a hurry what would you do? …
If there was a death, divorce or other disaster you faced how long would it take to sell? …
And finally what is your criteria of a good investment? …
D
Very hard to sell quickly. It would take at least 42 days (in NSW) if you sold it instantly. Probably another month of advertising at least. I guess you should allow for 3 months to 6 months to sell at a reasonable price.
Thats why you should keep some of your money in an offset account or shares, just in case of an emergency.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It s part of your risk management strategy.
Diversification – decide what you are buying (portfolio analysis – how to balance your portfolio: shares, cash, direct property, indirect property, int'l shares, etc),
Macro analysis for property – decide where you are buying (country, state, town)
Review the extent of your investment – how much & where, does it match your strategy?
Exit strategy – plan how long it will take to divest each asset/asset class (country property takes longer to sell etc).
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