Strategy 1 - Buy and Hold

The buy & hold strategy entails purchasing a property with the view of holding onto it over the medium to long term .The aim is to purchase a property in a high growth area, over aminimum period of 5 years the property is likely to appreciate in value substantially. It is important to note that the growth rate of commercial property differs to that of residential. Residential property generally appreciates at a higher rate than commercial property, although commercial properties fetch higher monthly rentals.

 When purchasing any property for investment purposes, make sure that income the property generates comes as close to covering expenses as possible. Over the long term, the property will pay itself off and you will own a debt free property that has increased in value substantially. The benefit of choosing real estate as an investment class is that you have more control of you investment; one can actively add value to the asset via rezoning, renovating or replacing tenants.

“It’s not about ‘timing’ the market; it’s about ‘time-in’ the market”