Article By Christopher Melotti
Wednesday, October 2, 2019

It’s good to buy, but it’s great to sell!

Buy and hold’ is an old adage that no longer delivers the best returns.

When you’re building a property portfolio, most people focus on buying and holding over the long term for capital growth. However, historical property data shows that most of the capital gain for a property is realised in just the first two to three year period. Profits come fast!

Hold is old. There’s a better more profitable way.

It’s a long-held Australian investor’s belief that ‘buy and hold’ is the only property investment strategy. But if maximising return is your goal, then the data says otherwise. Let’s delve into how technology can help you challenge this status-quo and achieve results.

Challenging the ‘buy and hold’ strategy

The reason this strategy is so ingrained in the property market is because it’s a way to minimise risk. Generally speaking, historical data has shown that, even though there can be short-term turbulence in the real estate market, over a long-term period, it tends to even out and generally trend slowly upwards.

As a result, this conservative strategy is widely accepted.

However, just like with other forms of investment such as Shares, well-timed selling is an effective way to maximise your return on investment.

Why do people only buy and hold property?

People often apply this old property investment strategy because accurate and timely data is not readily available. It’s easier to be conservative as, without the right information, it’s difficult to determine the ideal times and locations to buy and sell real estate.

But we’re living in a digital and highly connected world now and property investment tools like TUDI changes all of this.

Powered by AI, big data and years of property analysis, the TUDI algorithm combines information from multiple professional sources to help you identify the next suburbs about to boom or decline, right across Australia.

With this at your fingertips, you can be well-informed about when to buy and sell at the best times to maximise your return on investment.

Is selling now going to be part of your property investment strategy?

When you have the most accurate and up-to-date property market information, both buying and selling are smart tactics to help you invest, grow your property portfolio and achieve your goals of financial freedom quicker.

If you’re looking to make more informed decisions about property investing, consider TUDI.