Before you sell a property to fund your next move
This week, a lot of investors asked the same question in different words. Do I sell one property to fund the next move, or keep it and borrow?
One investor with two properties in different states wanted to sell one to upgrade the family home. A couple in their mid-50s with a paid-off home asked whether to borrow against it or stay debt free. The replies split. Some said keep everything and borrow. Others said compare the debt, the holding costs and the returns first. One person simply asked: do you need to upgrade at all?
That last question is a good place to start. If you’re leaning towards a sale, my guide to the costs of selling a property is worth reading before you call an agent.
What’s happening in the market
The market has given people plenty of reasons to pause. National home values fell 1.1% in September, the sixth monthly fall in a row. Capital city homes took a median 39 days to sell, up from 23 a year earlier, and total listings were 23.1% higher than a year ago (Cotality Home Value Index, September 2026). The Reserve Bank lifted the cash rate to 4.60% on 30 September, its fourth rise this year (CommBank Newsroom, September 2026).
Together, these say buyers have more choice and more time, and borrowing costs more. That matters on both sides of a sale. Sources: Cotality, September 2026; CommBank Newsroom, September 2026.
What I check before anyone sells
What job does the property do? Every property in a portfolio should have a role. Growth, income, or a buffer you can draw on. If you can’t name its job, that’s the first conversation.
What’s the debt, really? A sale only frees up what’s left after the loan is repaid and the costs are paid. Plenty of people work from the value and forget the balance.
What does it cost to hold, today? Interest at today’s rate, council rates, insurance, management and repairs. One investor this week called a property a cash cow. Once someone added up today’s interest and running costs, it was closer to neutral.
What’s the return on today’s value? The rent measured against what you paid years ago can look great. The fair test is the rent against what the property is worth now, because that’s the money you have tied up in it.
What would it cost to buy back in? Selling costs, plus the buying costs on the next purchase. If the plan is to buy again within a few years, that round trip can be expensive.
Have you spoken to your broker? Before you speak to an agent, ask whether keeping the property and restructuring the loans is an option. My piece on refinancing your property loans covers the questions to ask.
What this means for your next decision
If you’re weighing up a sale, write down three things: the job each property does, what each one costs you to hold this year, and the return each one gives on today’s value. Then take that list to your broker.
If you’re thinking about selling and buying in the same season, read how to buy and sell at the same time. And if the bigger question is where the portfolio is heading, start with mapping your investment strategy.
Not sure which property is doing its job? Let’s map your next move.
Book your strategy sessionShould I sell an investment property in a falling market?
Only if the numbers say so. A slower market means fewer buyers and longer selling times, so the case for selling should rest on the property’s job in your portfolio and its holding cost, not on the market mood.
What’s the difference between gross and net return?
Gross return is the rent against the property’s value. Net return takes out the running costs first: interest, rates, insurance, management and repairs. Net is the number that tells you what the property actually does for you.
Can I keep an investment property and still upgrade my home?
Sometimes. It depends on your borrowing capacity, your buffers and your goals. A good broker can show you whether restructuring the loans gets you there without a sale.