This may sounds absurd to you because logically you (as the owner of your property), should be the person who cares the most of the property. You may say that regular cleaning and maintenance is considered caring for your property, yes i do agree but what i see more importantly is how you value add your property.
From the day you agreed upon a certain value to purchase it till the day you agreed upon another value to sell it off to someone else, the difference between the two values will be the value you bring to your property. If there is a proceed, it means that the next buyer agrees that you (directly or indirectly) have increased the value of your property. Otherwise, if there is a loss, it means that both you and the next buyer agrees that you have decreased the value of your property.
How are you a liability to your property
Your decisions and actions made on behalf of your property has direct impact to the value it can generate through its life when it belongs to you.
By being adamant about lowering the rental rates in a market down trend results in longer vacant period, which your property is not only producing zero income but incurring mortgage expense.
By being ruled by greed, you cause your property to lose its value to alternative properties which its owners chose to protect it’s value rather than seeing it diminishes in a market down turn. The proceeds may be slightly lower than what it could be sold at during the market peak but it is still better than no interested buyers.
The above are only two examples which you as the legal owner is in fact a liability to your property by not protecting its interest from your emotion, judgement and poor planning.
How to check if your are already destroying your property
- Did you buy it when you know it is over-priced, driven by your emotion?
- Did you over-renovate and make it a stigmatized property?
- Do you have an exit plan?
What should you do if your property is damaged by your actions
- Treat it as separate entity, put on your rational thinking cap and have an exit plan
- Speak to professionals or friends who have good and bad experiences to share
How to keep your property safe
- Have regular reviews on property with respect to the current market situation – use SRX property tracker for easy status updates of your property.
- Leave it to the experts, let your trusted agent knows about your plan and let them monitor it for you.