Follow the trend or invest in long-term value?

[nmb]

While there are many different investment strategies, two which could not be further apart are following the trend and investing in long-term value. Which do you prefer? Is the trend your friend or do you buy on weakness where you see long-term value?

 

[lookinginvest]

I feel more comfortable buying good value property with a long-term investment timescale because any short-term investments depend upon the timing of your purchase and sale. A lot of pressure!

 

[nmb]

You need to carefully evaluate the risk/reward ratio when looking at investing in the latest property market trends. Also, it is vital that you ensure you are not the last one to "leave the party" and try to sell just before the market turns. Once the market turns downwards in "hotspots" it can be something of a bloodbath as investors scrambled to get out.

 

[lookinginvest]

We should not forget that property investment is a long-term commitment and while there is nothing wrong in apportioning part of your investment funds to "more speculative" transactions, you do need to keep a backbone of good value long-term property investments with steady cash flow.