Buy and hold in One area or Diversify? Question on strategy

[Nathan J.]

Hi all,

A question on strategy for buy and hold investors. I hear some investors say they like to buy multiple properties very close to each other. The theory being that they offer quality houses and bring up the average quality of that specific area.
I am not that experienced, but I would have thought it would be better to diversify with different areas. That way your properties don't compete with each other, and you can hedge against the potential decline of one area.

What do folk think here?