This article describes the fourth strategy of nine property investment strategies.
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Strategy 4 – Buy and sell
Pros
A simpler version of the buy, renovate and sell example above only that you don’t have to renovate. You simply buy, hold and sell for profit. This can be a great strategy in a fast upwardly moving market.
Cons
Once again, transaction costs make this a very difficult strategy to profit from. You need your property to increase around $40,000 in value before you will even break even. This is on average one year’s capital gain. In my personal opinion, this is a strategy best avoided unless you know something about the future direction of a market that no-one else knows (sort of like ‘insider trading’ in the property market).
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