Advantages of the buy and hold strategy

Advantages of the Buy and Hold Strategy

Imagine being involved in a business deal based on a product whose value had been increasing steadily over a certain time frame. If you are the seller of the product, you will obviously be happy because of the amount of profit you will be able to generate. This scenario is a practical example of the buy and hold strategy. The buy and hold strategy is associated with both advantages and disadvantages.

One notable advantage of the strategy is the fact that it can be applied to many forms of real estate. You can buy real estate at a low price during a period when real estate prices have drastically dropped. However, you can sell the same real estate at a much higher price after holding the property over a certain period of time as it appreciates.

When you buy and hold, you stand a good chance of making more money after the sale than if you had sold your real estate asset immediately. This is mainly because you may come across better offers in future as the value on the property increases. Knowing when to buy, and how long to hold, depend on each individual market, and continually keeping up to date on which way the market trends as time goes on.