14 Mar Buy and Hold Strategy
When looking to invest in real estate, there are a number of strategies and techniques that can be put to use for added return on investment. Some of the more popular methods include buying and flipping, or creating income properties for prospective renters. However, if you’re looking for a more long-term investment where your property can appreciate, an area you would want to look into would be what’s called the “Buy and Hold” strategy.
Buying and holding is not a difficult concept to understand. Rather than simply rehabbing and flipping your property, this strategy involves you holding on to the assets you acquire with the expectation that the value of your investment will increase as the market continues to recover. Buying and holding can provide an opportunity for investors to see a higher rate of return over an extended period of time. Also, long-term investments are typically given a lower tax rate than those with a shorter period. Taking part in a strategy like buying and holding may take more time, but the possibility of an increased return makes this a popular strategy among investors.