banner ad

Moving Back to Your Investment Property

Sometimes people venture in investing. Sometimes it pays off, sometimes it does not. What you need to know is when to call it quits before your endeavour bankrupts you. There is no shame in a failed project like moving out from your home in order to invest in it and rent it out. With today’s standards, tenants are hard to find, and even harder to control. Some tenants can be quite difficult and may cost you more than they pay you for rent.

When you had hoped for a long-term profit, but are currently between a stone and a hard place and need to take action, you should quit the investment while you still have the budget to move back into your old place. If you have been renting out cheap until now or lived with a friend or your parents, the move is simple – you call the movers, and start your moving checklist for the return trip. Start your life anew in your new old house, and start saving money for your next project.

However, if you had bought a new house and moved into it so that you can invest in the old one, the implications are slightly worse. One of those houses has got to go. Since you invested so much money into one of them, you should opt for comfort, and move there, leaving the newly-bought house for sale. Don’t make a repeat investment – this is not the time. Simply call the moving company and have it bring your things back to the old house. Now is the time you call a real estate agent and have him or her sell the newer house as soon as possible. And do not have pretences about the price, unless it is too low. Right now your biggest concern should be focusing on your move back.

Luckily, there are no serious tax implications about such a move. Usually, you should be worried of the Capital Gains Tax, which triggers when you live in a property for more than 12 months and then try to rent it out or sell it. But simply returning to live in the house you own should have no damaging effect on your accounts. Of course, you should have a meeting with an accountant to make sure everything else is in order, but otherwise your money – or what is left of it after the failed investment – is safe.

Again, investments are risks – not all of them pay off. Just like with sports, sometimes it does happen to make a play and lose. The only thing you should be worried about is dealing with the place that accommodated you during the project, and making a safe move back. But that has its solutions as well – call the best moving service a friend can offer you, and simply relocate back to your old – and better, thanks to you – home. Have a quick recovery and, if you are the adventurous type, focus on collecting money for the next endeavour.

Filed Under: property investment

Tags: ,

About the Author

Leave a Reply




If you want a picture to show with your comment, go get a Gravatar.