Real Estate Investment Short-term VS Long-term

20 December 2020 Article

For the real estate investor, the must can distinguish and analyze the difference among each kind of property investments, and choose the most adaptable kinds for themselves. Real estate investment can be divided into 2 main kinds.

1. Short-term / Booking Transfer

The feature of this kind is high-turnover of cash and potential high rate of return. The short-term investment need to compete with time — Booking transfer as soon as possible, which can be seen as a higher risk kind of investment.

2. Long-term / Estimated profit or rental

This kind of investment aims at long-term return, which include the rental income (passive income) which come after the construction finished, and the extra price gap which caused from the gradual increase of property price. This kind of investment’s risk is lower than the short-term kind because no need to be that hurry.

In general, each kind of investment has its risk. Therefore, every investor need to survey and study it first, and choose the most adaptable way for themselves, which is both able to bring quiet good profit for them and lower the risk also.