A perfect plan is needed before an investment, especially in property. This is because property investment is a long term investment and will highly affect your financial cash flow.
In property investment, there are only 2 strategy. Do you agree with this statement?
📦 Strategy 1: Keep
What is it mean in keep strategy in property investment? Keep strategy mean we buy a property now then keep it for long time of period where it can be 5 years, 10 years, 20 years, 30 years or forever without selling it.
In property investment, the longer you keep the more profit you will get! This is because property do have appreciation value and if you choose a good location and buy at the good timing, it may get few 100% in return of profit (ROI).
However, you will need to pay back the monthly installment loan to bank. In order to cover this monthly installment loan, a smart investor will rent it out with rental income. The rental income will have to at least able to cover the monthly installment loan or higher so that it will be have a positive cash flow.
Therefore, this keep strategy may also known as rental strategy!
📦 Strategy 2: Flip
Secondly, the property investment strategy is flip. Flip strategy mean after buy a property now then sell it off in a short term of period. This strategy is a short term investment strategy where it can be few months, 1 years, 2 years or 3 years.
A smart investor will plan and buy a property under value market now then sell it off when reach a certain % of profit (ROI) within a short term of period. This strategy normally is buy from developer on the new project. When the project is launched, investor will make a booking and buy the units. Then, after project complete to build, investor will sell it off with certain % of profit! This is called as flip or sell strategy.
With this type of flip strategy, you may no need to find any tenant to rent your property and no need to bother about the maintenance part of the property. It is lesser work compare to keep strategy!
Article Source: ChatProperty
Beside the 2 strategies above, there are few more strategies in the market.