Trading vs holding - obviously there is no set answer, either can work.
Holding only
- you buy one property
- maybe you buy another
- then you have to wait for gain in equity and also reliant on your income serviceability. So maybe get stuck at two properties for example if starting now.
Holding and trading
- you buy one long term hold
- then trade 3-4.
- Use the profits to reduce the debt on the next long term hold
- then trade 3-4
- Use the profits to reduce the debt on the next long term hold
- So if starting now and can trade successfully (which is very hard), then can accumulate a lot more buy and hold properties than could have with just holding!
Ross
Holding only
- you buy one property
- maybe you buy another
- then you have to wait for gain in equity and also reliant on your income serviceability. So maybe get stuck at two properties for example if starting now.
Holding and trading
- you buy one long term hold
- then trade 3-4.
- Use the profits to reduce the debt on the next long term hold
- then trade 3-4
- Use the profits to reduce the debt on the next long term hold
- So if starting now and can trade successfully (which is very hard), then can accumulate a lot more buy and hold properties than could have with just holding!
Ross
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