Should I Sell My Investment Property?

Many Australians are asking the same question: should I sell my investment property now, or hold onto it for a little longer? With interest rates, property prices, and rental demand shifting, it’s not always a straightforward decision.

The current housing market in Australia is complex. Property prices have held strong in many areas, especially in capital cities, despite rate hikes. Investor borrowing has tightened, yet rental demand remains high in key regions, putting pressure on yields. Some investors are seeing strong equity growth, while others are feeling the strain of rising costs.

Whether you’re looking to offload a property that’s underperforming, capitalise on recent price growth, or simply rebalance your portfolio, this blog will help you weigh up your options. And if you do decide to sell, we’ll show you a smarter way to choose the right real estate agent to handle the sale.

Should I Sell My Investment Property?

There’s no one-size-fits-all answer, but here are the most common reasons investors decide to sell:

• Strong Capital Growth: If your property has increased significantly in value, selling could allow you to cash in on that growth. Capital growth refers to how much your property has appreciated since you purchased it. For example, if you bought a property for $500,000 and it’s now worth $750,000, that’s $250,000 in capital gains. Selling at the right time could let you unlock those gains and reinvest elsewhere or reduce debt.

• Underperforming Rental Yields: Rental yield is the return you earn from rental income compared to the property’s value. If your property’s rental income isn’t covering expenses, or other investments could give you a better return, it might be time to rethink whether it’s worth holding onto.

• High Holding Costs: Investment properties come with ongoing costs: mortgage repayments, repairs, insurance, property management fees, and more. When these holding costs rise (as they have with increased interest rates), some investors find they’re simply no longer sustainable.

• Lifestyle or Portfolio Changes: Sometimes it’s not just about numbers. Life changes like retirement, starting a family, or shifting investment goals can influence whether it’s the right time to sell. You might want to reduce financial risk, simplify your portfolio, or free up capital for other priorities.

So, is now a good time to sell in Australia?

Right now as of June 2025, conditions may favour sellers in many parts of the country. Some markets have seen steady growth, and there’s still strong buyer demand in high-demand suburbs. But remember, property markets change, and timing alone shouldn’t dictate your decision. A well-maintained investment in a growth area can be valuable at any time. The key is knowing when you’re ready and ensuring you’re set up to sell well.

Key Factors to Consider Before Selling

Before you jump into selling an investment property, here are a few important things to think about:

• Market Conditions in Your Area: It’s not just about the national headlines. Suburb-level data matters. Your property might be in a suburb where prices are peaking or one that’s on the rise. Look into recent comparable sales, average days on market, and buyer demand locally.

• Capital Gains Tax (CGT): Selling an investment property may trigger CGT. This is the tax you pay on any profit made from the sale, minus allowable deductions. If you’ve held the property for over a year, you may be eligible for a 50% discount on the taxable gain. It’s worth speaking to an accountant to understand your situation. Learn more here about Capital Gains Tax on the ATO website.

• Future Rental Potential: If rental demand is rising in your suburb, it might be worth holding the property. But if vacancy rates are high or tenants are hard to find, selling could be the better option. Consider how rent trends are tracking in your postcode.

• Emotional vs Financial Decision-Making: Don’t let attachment to a property cloud your judgment. Just because you’ve owned it for years doesn’t mean it still serves your goals. Make decisions based on return on investment, not sentiment.

• Timing and Seasonal Impact: Spring is traditionally the busiest time to sell, but that doesn’t mean it’s always the best. Selling during a quieter season in a hot suburb might give you less competition and more serious buyers. The key is choosing a time that aligns with your personal circumstances and market conditions.

What If I Decide to Sell My Investment Property?

If you’ve decided the time is right to sell your investment property, the next step is critical: choosing the right real estate agent.

The right agent can add tens of thousands to your final sale price. The wrong one can cost you just as much. It’s tempting to go with the first agent you meet or the one who charges the lowest fee, but that can be risky.

Instead, compare agents based on:

• Local sales performance
• Client reviews and track record
• Their marketing strategy
• Fees and inclusions
  

This might sound like a lot of work, but it doesn’t have to be. That’s where Agent Choice makes it easy.

How Agent Choice Helps You Sell Smarter

Agent Choice is a free platform that takes the guesswork out of choosing a real estate agent. Here’s how it works:

• We analyse local agent performance data in your area
• We compare agents by results, fees, reviews, and experience
• We deliver a personalised shortlist of top performers suited to your property
• You choose who to speak with, no pressure, no cost
  

And here’s the bonus: when you sell through an agent you connect with via our platform, you can receive a cashback of up to $5,000 after settlement. It’s our way of thanking you for making a smart move.

Whether you’re ready to sell now or just exploring your options, Agent Choice gives you the tools to sell confidently and profitably.

Final Thoughts: Is It Time to Sell?

Deciding whether to sell an investment property is a big call, but it doesn’t have to be overwhelming. By understanding your property’s performance, weighing up the market, and getting professional support, you can make the right move at the right time.

If you’re ready to explore selling, let Agent Choice help you compare the best agents in your area, quickly, for free, and with a cashback reward when your sale is complete. Contact Agent Choice today to get started and sell smarter.