Value Bomb: Coastal Buy and Hold Strategy
I have four pieces of advice for those looking to invest in real estate on a buy and hold strategy here in Orange County, and the first is buy as close to the water as you possibly can. These locations will remain desirable to buyers and appreciate quickly. They can build more houses, but they can’t make more coastal land!
Second, pick a zip code that has the best historical gain track record. These neighborhoods weather the market in the long term, and aren’t vulnerable to trends.
Third, opt for a single family home over a condo whenever possible. The more control you have as a buyer on the property, the more appealing it is and the more flexibility it provides for change.
And fourth, last but not least, skip the allure of upgrades if that extra premium would allow you to get a better location, because I can promise you in 10-15 years, the fancy counter tops and fixtures aren’t going to mean much. Trends come and go, but the value of the lot will remain.
If that helps you boost your purchasing power in a buy and hold strategy to get into a better location up front, you’ll be better off.