Real renovators are builders. Lot of people renovate thinking that they are adding value. I am a renovation sceptic. Did this a few times and realised that it is the market that increases the value rather than the renovation. Try renovating when the market is not moving and see how much value you add. Builders genuinely increase value by taking a raw piece of land and building in any market and making a profit.
I am a speculator. Lots of fools who think they are investors are deluding themselves by buying and holding and praying that the value will go up. There are several problems with this approach. If the area turns bad due to crime etc you need to get out quickly. If there is toxic waste or other environmental disaster your investment will have a negative value. You could get sued for different reasons.This shows that buy and hold is a very risky strategy.I deliberately define myself as a speculator so I remain vigilant to these risks. Buy and hold is a mugs game. The risks are too high. Be very wary of people who advocate this strategy. Think of developers who build sell and move on making millions who pass on the risk to buy and hold fools who increase their risk through negative gearing. Nobody knows what is going to happen in the long term.
I am a speculator. Lots of fools who think they are investors are deluding themselves by buying and holding and praying that the value will go up. There are several problems with this approach. If the area turns bad due to crime etc you need to get out quickly. If there is toxic waste or other environmental disaster your investment will have a negative value. You could get sued for different reasons.This shows that buy and hold is a very risky strategy.I deliberately define myself as a speculator so I remain vigilant to these risks. Buy and hold is a mugs game. The risks are too high. Be very wary of people who advocate this strategy. Think of developers who build sell and move on making millions who pass on the risk to buy and hold fools who increase their risk through negative gearing. Nobody knows what is going to happen in the long term.