Cutting losses on investment properties

Cutting losses on an investment property is a painful experience for most people. Human nature being what it is, all of us prefer to talk about our success in property investment, including yours truly.

Few investors, I think, will have the courage to admit to making a mistake buying investment property that didn't generate the expected rental income. I think but cannot be 100% certain most of the high end KLCC properties including some $$$ Branded Serviced Residences going to the auction block are probably highly geared investment properties that suddenly could not generate sufficient cashflow to service loan installments when rents fell 30-40% during the pandemic.

Sean Tan, a well known property blogger that I follow on YouTube and Tik Tok recently shared his experience selling a house at a loss. https://m.facebook.com/story.php?story_fbid=974064113220610&id=113450339281996 I also know the pain of selling at a loss my entire stock portfolio in the aftermath of the 1998 stock market crash. https://lnkd.in/gk5ax6mQ

Unless you have also seen your blue chip stocks crash down 20-30% in a single day (only to repeat the performance the following day) you have not experienced the levels of fear and anxiety I went through more than 20 years ago. But having cut my losses I was able to generate cash to buy on the market's rebound.