National Association of Realtors reports that on average, investors today plan to keep their real estate investments for 10 years. A long term stratedgy builds wealth while a short term one is more risky and speculative. "Buy and hold" is a safer way to build wealth.
I look at it like this,….over time, the appreciation of your investment makes money for you in the long run. If you hold property longer than 5 years you can get a tax break as well. Better yet, you can roll your investment into other investments and delay paying taxes till many years in the future.
Buying and selling quickly to make money is a job, not investing. Some people call this flipping. It hard work, it's risky, but done correctly, can make nice short terms profits. The problem is, it has to be repeated over and over to make a living. One bad flip can lead to heartache.
Before investing to build wealth, the key is to know the difference between the philosophies and have an exit plan for any investment BEFORE you buy it.
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