Long term property investment strategy that offer great profits in the future are actually quite diverse. For example, there are buy and hold strategies, BRRRR strategies, and house hacking. Each investor is free to choose which strategy to apply according to their desires and needs. Below we will discuss further some of these strategies.
Long Term Property Investment Strategy That Can Be Applied
Investing in property in the long term is indeed a choice for many people. This is because this investment offers many unique advantages. For example, one advantage is the potential for high property value appreciation as time goes by; property prices tend to increase, which can provide greater profits in the future.
Another advantage is that it can provide passive income while holding onto the property. This is because investors can rent out their property, allowing them to continue earning income without having to sell the property. Investors also do not need to worry about daily or weekly market fluctuations as they focus on long-term growth. In addition, there are still many other attractive benefits.
1. Buy and Hold
According to a video from the YouTube channel BiggerPockets, the time to sell a property after holding it is a personal decision, so there is no specific time that requires investors to sell the property. Investors can sell it when they have the opportunity and can turn the old property into another, more profitable opportunity in the future.
2. BRRRR
The next strategy is the BRRRR strategy or Buy, Rehab, Rent, Refinance, Repeat. In this strategy, investors start by purchasing properties that have a lower value below market value. Usually due to their poor condition and the need for renovation. After purchasing the property, investors then renovate by repairing the building, enhancing esthetics, and adding facilities to increase the property’s value.
In this long term property investment strategy, after the building is renovated, the investor can rent it out to others to generate income to cover the costs incurred for the property. After some time, the investor can then refinance the property to take advantage of the increased value of the building. Investors can then use the money from the refinancing to repeat this strategy from the beginning.
3. House Hacking
Another strategy is to do house hacking by buying a property with several units. The investor then uses one unit while renting out the other units to others. The income from renting out these units can cover the cost of purchasing this property while also building a source of passive income in the long term before selling the property again.
Long term property investment strategy are indeed quite diverse. Whether it’s a buy and hold strategy, BRRRR, or house hacking, it can be the right and profitable choice for investors. Investors just need to choose which strategy best suits their needs and desires./decha
