Hold property for the long term this is how you create long term property wealth. If you buy and sell property this gives you cash flow, money in money out.
All wealthy individuals will have real estate of some sort in their portfolio so its important to follow this idea of holding property for the long term, whether that is commercial or residential.
You can buy and sell property for a profit but you only achieve the difference between how much you spent + tax and how much you sold the property for. There is no capital gains and no rental income from this strategy.
Where as a hold property gives you both rental income and capital gains over time when you eventually sell either in 10 years or 20 years time. Currently in New Zealand there is no capital gains tax as long as you hold for 10+ years.
The property strategy you employ needs to be decided before you begin your property investing. Are you going to trade property (buy and sell for a profit) or are you going to hold property for the long term. Both strategies are completely different and hold property is the only property investing strategy. Where as trading property is not an property investing strategy but a cash flow strategy. Be mindful of which strategy you use.
My life has taken a different turn but for the better after recovering from cancer in 2014. I have taken this opportunity to do the things I love and that is sharing my passion and knowledge. I have represented NZ at swimming. Made companies here in NZ and in London millions of dollars through sales and marketing. I have travelled around the world for 7 years. I've seen, worked for and been with some of the greatest entrepreneurs on the planet, Tony Robbins, Richard Branson and Richard Rothschild. With the right mind-set you can achieve anything, but you have to be prepared to work for it, nothing comes on a plate.