Long versus short-term investment

Rental properties

There are two different types of investing when it comes to the investment of homes. There is long term long time return investment and there is short-term high gain investment.  The two both have their pros and cons and we are going to share those with you today. Both are great ways of investing in property but we would like to educate you on both types so that you know what you’re getting into if you decide to do one or the other. Who knows, you might even decide to do both if you like both types of investing.  Over the years though, we have noticed that there are two types of investors.

  • short-term high gain investment in property-  short term and high gain vestment is something for property investors that are looking for a very fast return that is going to give them a lot of money. The perfect type of thing to do for this type of investing is finding homes at low prices and then flipping them to face value, or finding  homes that are fixer-upper’s and then flip those as well. So basically if you are a home flipper then you are this type of investor. This has its pros in that it is going to give you a very high return at a very fast rate if you can get the work done in a timely manner. But the only downside about this is that there’s a 50-50 chance that you’re going to make money.  If you get into a bad market and nobody is buying at that time then you are in trouble. You could buy a perfect looking house for dirt cheap price, but when you fix it up it could come to the point where there are just no people in that market to buy the home you just fixed up. Sometimes homes can be up flip and sometimes they can be a flop. It’s just a game of short-term investment.  Is just like Penny stocks,  it can be very high risk. The good thing about property though is that if he doesn’t sell you can easily wait on till it does sell.
  • Long-term investment-this type of investment is for people that are looking for a 10 X return over 10+ years. This is the type of investment where you  won’t see any fast money come in. For example, if you bought a house and are using it as a rental property then you are a long-term investor. You’re not going to see a high cash flow return in the beginning but with these kinds of investments you can stack them to make a very large residual income. Honestly, this is a smarter type of investing them home flipping because  something that is going to allow you to retire. You can’t flip homes all your life, and when you do you have to work very hard. This might be slower money in the beginning, but once you stack very high then you will be able to collect that money in for the rest of your life without doing another ounce of work.

Those of the two different types of investments, one gives you very high return and is great, but it takes a lot of work and you can’t do it forever. And the other one is for people that want to stack a large income slowly that will eventually get very big and you can retire off of. It all really depends on what you’re looking to do and what type of Person you are. So take our advice on this and go do whatever you ever see fits for you!

we have to give a special thanks to this post to houzz.com for giving us inspiration on homes.