The Economic cycle plays a significant role in real estate investing. The idea of an Economic cycle is simple. It states that what goes up must also come down. Although housing prices and real estate, in general, have had an overall increase in value for a great many years and there is the confidence that the market will never crash completely. You can also look for real estate for beginners via

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Although this strategy is not really bad for the long term investor, it will not enable him to realize the type of return that is possible when investing in certain profit rich areas.

The cyclic nature of the Economic Cycle presents a danger that the market will be on a downswing when you are looking to unload your investment and the years taken to reach your goal might tie up your investment capital so that other opportunities are missed.

In an area such as Provo real estate, where profit potential is so great because of the attractiveness of the area for investing in properties that can be converted to rental units, the hold on to it strategy is a poor choice for the investor who wishes to make a solid return.

There are other strategies that make much more sense. Even the Bargain Purchase strategy is better. In this concept, only properties that can be purchased at below 20% of their true value are considered.

Another strategy that is related is the Increased Value strategy. This is going to be more likely in an area such as Provo real estate. It involves purchasing at the actual true value and making improvements within the first six months that increase the value by 20% and then return the property to the market at the increased value figure.