Zaki Ameer of DDP Property on Selling Your Property
(Photo : Zaki Ameer of DDP Property on Selling Your Property)

Recent property auctions in Sydney have been averaging a whopping clearance rate of over 80 per cent. It's obvious that Sydney is currently sitting as a seller's market with properties being purchased at new all-time high figures. It may be tempting to jump the gun and put your property on the market to reap the current benefits, but the experts believe that selling should actually be your last resort. 

Investment real estate expert, author and Dream Design Property (DDP Property) Founder Zaki Ameer built himself a successful property portfolio of 10 properties, totalling $3 million in just a few short years and he continues to amass his fortune today.

Realising his passion for helping others, in 2011 Zaki founded DDP, a property investment and strategy company. Following the poor timing of a property sale, Zaki has counselled countless people on what they should do the next time they find themselves in this scenario. 

Zaki strongly believes that selling your property should be your very last consideration, but if you must sell it's imperative to keep the following points in mind: 

  1. How much capital gains tax will you be paying? You must estimate the amount of capital gains tax (CGT) you will be paying before you sell your property. CGT is the levy on the difference between what you paid for the property and what you received once it was sold. The tax depends on various factors and can often be a hefty amount, significantly decreasing your profit margin. Unfortunately, most people only consider CGT post-sell and end up paying much more than anticipated, making the sale not worthwhile at all.
  2. Will you be using the profits wisely? You may be thinking of selling your property to direct the profits towards another endeavour, but you should only do so if you're planning to use the money for a greater and more profitable investment, such as expanding your property portfolio or funding a new business venture. Before you sell, you must be certain that the future investment will be far more rewarding than if you were to keep the property.  
  3. Do you have a vacant property?  While selling should always be the last resort, if your property has been vacant for longer than a two month period then it indicates a bad investment. In this case, you should sell up and move onto an investment that will prove more fruitful. 
  4. The current market performance. The property prices in some major Australian cities are hitting record levels, so if you must sell, now is the time. More importantly, you should never consider selling at a low point in the market. Investigating the current level of demand within your selected suburb will also work to your advantage because if there is a high demand in that area, you can leverage a higher price for your property.
  5. The amount of equity on your loan. Equity is the difference between the market value of your property and the balance of your mortgage. Depending on your financial circumstances and approval from your lender, you may be able to use the equity on your loan to fund other endeavours. If you have been doing this for a period of time and there is no more equity to withdraw, then you might consider selling, as the loan will end up costing you more due to the lack of equity. 

Zaki Ameer is the Founder of Dream Design Property (DDP Property), a unique wealth creation mentoring program that is designed to help Australians gain financial freedom, offering each client an ongoing personalised service catering to their changing circumstances and needs. DDP has recently launched Kickstart, the first affordable program designed specifically to help Gen Ys take their first step into the property market.  

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