Buy and Hold Strategy
What is the buy and hold strategy? This strategy, as the name suggests is to buy a property and hold on, and when I say hold on I mean for the long term. This strategy is aimed at making your millions through capital growth. By capital growth I am referring to the value of the property increasing over time.
In addition to the capital growth, you can create cash flow. Cash flow is obtained by renting the property out for someone or some family to live in. This cash flow helps to pay the interest, rates and other expenses. Quite often when people first purchase a property, the rent does not cover the expense and you will have to pay the shortfall. However, as you hold on to the property, over time the rents will increase and providing the rent increases faster than the expenses, then the rent will cover all the expenses and start putting money into your pocket.
The buy and hold strategy is suited to people with patience.
Your first fun task is to discover if you have the patience for the buy and hold strategy.
Do you swap and change to the latest trend or do you stay with what you know works for you?
Do you listen to what everyone else says or can you stick to your guns and follow your plan for the long term?
Can you see yourself owning lots of properties?
Could you call yourself a landlord?
Do you have patience to make this work and make your millions?
Is the Buy and Hold Strategy your perfect property strategy?
In addition to the capital growth, you can create cash flow. Cash flow is obtained by renting the property out for someone or some family to live in. This cash flow helps to pay the interest, rates and other expenses. Quite often when people first purchase a property, the rent does not cover the expense and you will have to pay the shortfall. However, as you hold on to the property, over time the rents will increase and providing the rent increases faster than the expenses, then the rent will cover all the expenses and start putting money into your pocket.
The buy and hold strategy is suited to people with patience.
Your first fun task is to discover if you have the patience for the buy and hold strategy.
Do you swap and change to the latest trend or do you stay with what you know works for you?
Do you listen to what everyone else says or can you stick to your guns and follow your plan for the long term?
Can you see yourself owning lots of properties?
Could you call yourself a landlord?
Do you have patience to make this work and make your millions?
Is the Buy and Hold Strategy your perfect property strategy?