Image via Wikipedia
The school of thought for many investors was that a home is purchased that needs some TLC, or extremely low, then turn right around and sell it. In today’s market with pricing being so low, many investors are seeing deals that they just cannot pass up. The problem is that flipping and reselling right away are no longer an option. However, what is an option is sitting on the property, and allow the market to work its magic.
Making That Purchase Work
Holding onto a purchase is a great way to develop an overall net worth, have a series of income properties, and then begin to wait until the market begins its climb back. This is how many investors made their millions during times of economic strain. There are a couple of schools of thought on this type of strategy.
The first is that the rental market is at nearly full occupancy rates. This means that a home will not sit vacant for much time.?The sad reality is that people are losing their homes, so renting is their only option.
As far as investing is concerned, there is also a new trend where buyers can purchase the home that a family lives in, then allow the family to remain in the home as a rental. When the market comes back to life, the family can then have the option to re-purchase the home. This is another idea that has allowed people to stay in their homes, while allowing investors to capitalize on the slow market.
Good Timing for All
There is negativity surrounding the housing market today, and for good reason; it is slow, unproductive, and has a diminishing return. The idea of holding on to a purchase suggests that the high-risk reward factor is tamed. Taking advantage of, and maintaining, properties is something that will reward in years to come.