Daisy Hill , Australia (PressExposure) September 09, 2009 -- Some would say that if you are buying and selling properties to make your income, that you are not a property investor. That would seem to be a debateable question.
What is a property investor?
I think we would all agree that a person who buys property and holds it, would be considered a property investor.
A person who buys and sells property to make their income would, in most cases, still say they are a property investor because they still have to invest and risk money in property in order to make their income. One could call this âshort term investingâ.
Personally I donât know of any particular definite clarification at this point but it is worth pursuing, more from an interest point of view.
This argument is one that is bandied around the share market where an investor is considered to be a person who buys and holds whereas a person who is in for the short term trade is considered to be a âshare traderâ.
So with property, is one called a âproperty traderâ?
If you have been a buy and hold property investor and consider becoming a buy and sell investor then you will need to go through quite a different mind shift.
The two property investment strategies are quite different from each other.
Some buy and sell investors do just that, buy and sell. Buy low and sell high, whereas others like to be involved in renovating to make their profit. These are two different strategies again and each needs their own set of criteria in a business plan.
Generally a âbuy lowâ purchaser would be looking for sales which have to be sold for a particular reason like: â¢ mortgage foreclosure â¢ deceased estate â¢ divorce dispute â¢ severe illness
If a buyer is cashed up and purchasing in these particular situations, a very good price can often be negotiated.
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