Gavin ChauLeave a comment
The question of whether an active or passive investment strategy is better is a perennial one—not only in real estate but also in equities and other asset markets. In property, an active strategy can take the form of renovations or flips. You could say flipping property (where you hold it for a short period before on-selling) is similar to share trading. However, the high transaction costs (such as stamp duty and agents fees) associated with buying and selling property usually make this an ineffective strategy. That’s before mentioning the 50% capital gains tax you’ll incur on any profit you manage to make.