The key facts

  • Property should be sold if its maintenance forces cutting spending on food and health, and ownership causes worry
  • Moving to cheaper housing is justified when it frees up 15–20% of net income, giving up a car — when saving 30–40% on transport
  • Before selling, one must account for taxes, commissions, moving costs and future rent payments, and direct the proceeds toward paying off debts or a reserve

When selling becomes justified

One should consider selling an apartment or a car if their maintenance regularly forces cutting spending on food and health, while the benefit of ownership keeps shrinking. This was told to Gazeta.Ru by Garda Capital stock market expert Kirill Seleznev. According to him, another alarming sign is when the property causes mostly worry rather than satisfaction. An example is a car that sits idle most of the time but requires paying for insurance, maintenance and parking.

How to assess the benefit of the deal

Seleznev advised evaluating not only the sale price but also how the monthly budget will change after giving up the asset. If selling an apartment and moving to cheaper housing frees up 15–20% of net income, such a deal may justify the associated costs and inconveniences. For a car, the expert suggested focusing on cutting transport expenses by roughly 30–40%. With low mileage, taxis or carsharing may be cheaper than ownership, but if the savings are small, the convenience of one's own car can outweigh the financial benefit.

What to consider before selling and where to direct the money

Before selling, according to Seleznev, one must account for taxes, intermediary commissions, moving expenses and the cost of replacing the property. If renting housing is planned instead of owning an apartment, future rent payments should also be included in the calculation. The expert suggested using the proceeds to reduce expensive debts, replenish a financial reserve and, if necessary, buy a cheaper property. When choosing between paying off a loan and saving, he recommended comparing the cost of the debt with the returns of available instruments. Leaving the entire sum without a plan is not worth it: inflation gradually erodes its purchasing power, Seleznev concluded.