There are times when property investors realize that they have the capital to invest. The truth is real capital investment and growth is not a sudden act. It requires planning, and you need to look into future investment opportunities. And one of the investment strategies that property investors are fond of is the “buy and hold” property investment.
What is the buy and hold investment strategy?
When you opt-in for the buy and hold investment strategy, you can buy an investment property of your choice, rent it and wait for the same property to increase in value in time. It is mostly a “set and forget” policy for your investment. There’s not much to do on the purchased property. Also, the maintenance and renovations are minimum. And this is why you need to choose a property in the right condition so that you don’t have to pay for maintenance and refurbishments. You can check out Thirlmere Deacon Dubai to learn more. Property investors and developers count on it for expert investment consultancy and other guidelines.
Why do property investors like this strategy?
The essential reasons for which most property investors opt-in for this investment strategy are:
- It doesn’t take much time
Most property investors call this a “hands-off” investment strategy because they need not pay for maintenance. At times property investors might need a Project Manager to manage the tenants.
- It is accessible
Property investors need very minimal cash to get started with this. Also, they don’t need much know-how or background information on the building sector before starting. When you “buy and hold,” all you require is cash to buy the property. On the other hand, when you decide to “buy and flip,” it becomes essential to renovate and upgrade the property along with purchasing it. Property investors must keep the cash ready for the purchase.
Also, property investors need to recognize the correct property for buying it. On the other hand, when you opt-in for a “buy and flip” strategy, you will have to know much more about the property and the types of cost-effective renovations to carry on. It is also essential to know where you can source the building materials.
- The risk is less
Most property investors consider this strategy to be less risk-prone because of the two reasons mentioned above. Additionally, a few properties are available, which is a good “buy and hold” option for the property investors, for instance, a brand-new real estate property. Also, you might require very few deposits from banks to invest in this property. And this restricts the capital amount that you might place at risk of being a property manager. Since you don’t need to know much about this strategy, there is less chance of making silly mistakes. Also, you are less likely to spend your capital on areas that don’t add to the property value.
The market currently is fluctuating because of the pandemic outbreak. But sooner or later, as the market becomes stable, you will have the chance to resume your property investments business to normalcy. The reasons mentioned above are why you should opt-in for the buy and hold strategy of investment.