Why a buy and hold strategy could be your best bet

Why a buy and hold strategy could be your best bet

In the post-Brexit world, there is a certain amount of uncertainty in the property investment market and that’s why many shrewd investors are adopting buy and hold positions.

Buy and hold simply means focusing on those prime residential or student properties that will provide sufficient cash flow to cover your monthly expenses. With a buy and hold approach, investors seek out properties that are a safe bet for obtaining tenants and delivering a reliable, regular monthly income.

In other words, these aren’t properties that you are looking to flip. These are properties that you hold on to for a long time and simply reap the benefits of monthly rental income. The right property in the right location will deliver a consistently good income and provide a cash cow that investors can draw upon with ease.

Of course, finding the best properties to buy and hold is all about doing your homework. It’s about researching the best locations, where the demand is and not getting caught up in the mistakes that so many novice investors make  e.g. spending too much on property renovation and not getting the returns they need to make it worthwhile.

Capital appreciation is a bit of an after-thought when it comes to buy and hold strategies. It’s a nice to have rather than a need to have. After all, these are properties that you are going to hold on to for a while so the focus needs to be on the monthly rental income that is achievable rather than the long-term selling price.

For more advice about buy and hold strategies in the property market and the best type of properties to invest in, please get in touch.