When it comes to property investment, there are dozens of different strategies and you need a ‘property coach’ with specialist knowledge and experience to explain the benefits and pitfalls of each strategy, based on your personal situation. You also need a coach to help you set clear goals of what you want to achieve.
At Equity Gain, we strongly support the ‘Buy and Hold’ strategy. To understand the reason behind this strategy, you need to understand the costs of purchasing and selling a property and the taxes that are relevant for each transaction. When considering property investment, inexperienced investors fail to include the taxes that need to be paid such as Capital Gains Tax, Land Tax and Marginal Tax. If you don’t know or understand how these can affect your strategy, you are not in a position to know if your strategy is going to be effective until it’s too late.
It’s far better to look at your options, consider all the pros and cons of each option, then make an informed choice, long before you purchase any investment. You’ve no doubt heard the age-old claim that property doubles in value every 7 – 10 years? It’s important to remember when using the ‘Buy and Hold’ strategy that it’s a long term strategy and is not to be used for short term gains.
Contact Equity Gain today for a Free Consultation.