At different times, different investing strategies work better than others.
Changing market dynamics mean that a strategy that might work today won’t work tomorrow – and vice versa.
What’s working today?
A buy-and-hold real estate investing strategy.
Why is now such a good time to buy and hold? Here are a few key factors…
1) It’s a buyer’s market.Right now in most places across North America it’s a buyer’s market. You can get rock-bottom prices on high-value properties that are sure to increase in value in the mid- to long-term. Prices in many areas of the USA are below replacement costs. This means that you can buy the property for less than it would cost to rebuild…and you get the land for free! Prices will NOT stay this way for long.
2) Slow short-term growth.While long-term increases are expected in the national real estate market, we’re currently experiencing slow growth in the short term. You should expect excellent appreciation, but only if you can manage a 3-to-5 year hold strategy. When you combine appreciation over several years with cash flow positive rents in the short term, the total return on your investment should be excellent.
3) Strong rental market. Due to record foreclosures and short sales in the past several years, and the overall sluggishness of the economy, many people simply aren’t in a position to be able to buy their homes. Yet, they’ve gotta live somewhere. All this leads to a strong rental market where you won’t need to discount rents and can pick and choose excellent tenants.
Right now, we strongly recommend a buy and hold strategy as you’re analyzing potential real estate investment deals.
To date, have you focused more on a fix and flip or a buy-and-hold strategy?
For more information on how you can escape the rat race for good and create lasting, generational wealth with real estate, download my FREE ebook, “How to Find Underpriced Properties: Secrets for Creating Wealth with Real Estate in ANY Economy.”
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