Owning an investment property requires careful strategic decision-making to maximise returns. In Western Australia, diverse factors such as market dynamics, economic conditions, and personal circumstances play integral roles in determining the optimal time to sell.
Given the complex nature of the real estate market, discerning the right moment to offload your property can be challenging.
In 2025, prices rebounded after the first rate cut in four years, lifting sentiment and sales volumes. Most recent investor resales have been profitable, but selling times vary by city. Use the signals below to decide whether to sell now or hold.
Related: How to Avoid Capital Gains Tax When Selling Investment Property in Australia
Understanding Market Conditions
Property markets move in cycles. Knowing where your area sits in that cycle helps you decide whether to hold or sell.
Track these data points each month:
- Price trends from PropTrack or Cotality indices
- Days on market (how long listings take to sell)
- Auction clearance rates in your city
- Rental vacancy rates and rental growth
If prices are rising, listings are selling faster, and auction rates are strong, it can be a good time to sell. When buyer demand weakens or listings build up, expect longer campaigns and lower prices.
Seasonal timing also matters.
Spring usually brings the most buyers and higher competition. Winter campaigns can work if your property stands out in a quieter market.
Related: Are you looking to build an Investment Property in Perth? Click here to get started.
Assessing Financial Performance
Evaluate your property’s returns each year. Compare it to other investment opportunities or paying down debt.
Calculate:
- Annual rental income minus maintenance, insurance, interest, property management, and land tax.
- Allow for capital works and major repairs.
- Estimate your internal rate of return (IRR) and compare it to what your funds could earn elsewhere.
If the net yield is below the loan interest and outgoings for several quarters, or the property requires heavy capital repairs, it may be more efficient to sell and reinvest.
Sell vs Hold: Quick Decision Framework
Sell now if:
- Net yield < total holding cost (interest + maintenance + insurance) for 12+ months.
- The suburb price trend is flat or negative for six months.
- Another opportunity offers stronger growth or less risk.
- You want to rebalance your portfolio or free cash for personal goals.
Hold if:
- The property produces positive cash flow.
- Local price and rent trends are improving.
- Infrastructure or zoning changes will likely lift long-term value.
- You’ve owned it for less than 12 months, and selling now would reduce the CGT discount.
Selling a Tenanted Property
You can sell with or without a tenant, but the approach differs.
Selling with a tenant:
- Notify the tenant through your property manager as required by the tenancy agreement.
- Consider lease expiry dates—long leases can appeal to investors but deter owner-occupiers.
- Maintain good tenant relations to ensure inspection access and a presentable appearance.
Selling vacant:
- Offers more flexibility and usually attracts a wider buyer pool.
- Factor in a short-term vacancy period while preparing the property for sale.
Capital Gains Tax Considerations
Capital Gains Tax (CGT) is a major factor in your final profit.
- 12-month rule: Hold the property for more than 12 months to qualify for the 50% CGT discount (for individuals and trusts).
- Six-year rule: If the property was once your main residence and you moved out, you can treat it as your main residence for up to six years while renting it out—potentially eliminating CGT if sold within that window.
- Cost base: Include stamp duty, legal fees, agent commission, and capital improvements to reduce the taxable gain.
- Non-resident owners: May not receive the CGT discount; seek professional tax advice.
Keep complete records of all costs from purchase to sale.
Costs of Selling
Budget for:
- Real estate agent fees (2–3% on average)
- Marketing and photography
- Styling or minor renovations
- Conveyancing or legal fees
- Bank discharge and settlement costs
- Compliance certificates and final maintenance
Add these to your calculations before setting a reserve or price expectation.
Future Market Prospects
Australia’s housing market is entering a renewed growth phase after the 2025 rate cut. According to PropTrack, national dwelling values rose modestly in early 2025, while time-on-market shortened in major cities. Perth, Brisbane, and Adelaide continue to show strong investor demand, supported by tight rental markets and limited housing supply.
Monitor the following indicators each quarter:
- PropTrack Home Price Index or Cotality HVI
- RBA interest rate announcements
- ABS dwelling approvals and construction data
- Rental yield trends by suburb
If these show rising values and healthy buyer activity, conditions may favour selling into strength.
Lifestyle and Personal Goals
Sometimes the decision to sell isn’t purely financial. You may wish to:
- Simplify your portfolio or reduce debt before retirement.
- Access capital for another project or home upgrade.
- Exit the market to free up time or reduce management burden.
Ensure your choice aligns with your broader financial goals, not short-term sentiment.
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