One of the more common methods of property investing is the buy and hold strategy.
The buy and hold strategy is favoured by long term investors for a number of reasons.
Tenants help to pay down the loan.
While the property generally appreciates in value over time.
Which typically generates long term capital growth.
Which provides greater equity.
That the investor can then leverage for more property investment purchases in the future.
Providing the property portfolio has risen in value, investors then have future options to reduce or eliminate debt by selling off some assets and then refocusing the profits back into better performing or better income producing assets.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
