How Often to Switch Property Investment for Maximum Benefit?

“Don’t wait to buy real estate, buy real estate and wait.”

We usually hear such sayings when it comes to property investment. Buying a property is a big decision. But, over a period of time, one tends to contemplate whether to sell it or retain. It is either maximizing the profit or in lure of the best real estate investment that one plans to switch a property investment. But, if you sell it too early you could miss a property boom and capital growth. While, if you sell it too late, your property price could stagnate and you can miss the chances of a better investment.

When should you switch property investment?
Just pause and try answering the below questions

  • What are you going to do with the money?
  • What return you are getting?
  • What return you can expect in the future?
  • If you take out the investment, what are the other options?
  • What are your financial goals, eventually?

Answering the above questions, will help you take a decision whether you should keep your property or move on.

Tax Implications of Switching Property

  • If you sell a property within two years of buying it, the capital gain will be taxable. It will be considered as short term capital gain. The amount will be added to the taxable income of the individual and the applicable tax rate will be applied.
  • If the investor quits, after two years of making the investment, it will be considered as a long term capital investment. The tax on property will be 20% with indexation.

So, if you switch a property investment at an early stage, the tax liability will be more. While, in the case of long term capital gains, your property will be taxed at 20% after indexation. The term indexation means that the inflation during the holding period will be taken into account and accordingly the purchase price is adjusted. In addition, in the case of long term capital gains, you can also benefit with various other exemptions like expenses incurred on repair, renovation and interest paid during the pre-construction period, if you have not already claimed this deduction. You should consider both the projections, before you take the plunge.

What is the Ideal Time to Switch?

The ideal time for switching an investment property is when you are getting a lucrative deal. Alternative investment should be a favourable one, giving you high rate of returns as compared with the existing one. Otherwise, it is better to wait and then switch. And you can switch as many a times as you want and appreciate your wealth, manifold. But, buying and selling should be a profitable deal working in your favour.

Looking for Property for Investment?

If you are looking for a property for investment in south Bangalore, then there are options aplenty by Valmark Developers. From uber luxury apartments to villaments, there are various options by Valmark in sought after locations, which can reap you good returns. You can view the different projects, plan a site visit, and make an investment, which you will cherish forever. There are uber luxury high rises in the heart of south Bangalore, Valmark Apas, Off Bannerghatta road and premium villaments, CityVille. These dwellings will give you the returns, but switching may be hard for the magnificent living you and your loved ones will experience after staying, here. If the project return is your main criteria, then you can make an analysis on the basis of our completed projects, as well. View our under construction and completed projects here and make the finest property investment, ever.

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