Do I still buy and hold if prices are going down?

[Tony Nguyen]

Here in the Central Florida market, things are shaping up for prices to take another dip. Inventory is rising and demand is slowing down noticeably. I have a goal of buying my first buy and hold by February 2011 (I've only bought and flipped, never held).

If you knew that prices were going down more, is it still logical to buy and hold? Some have told me it's common sense to not buy if you know you're going to "lose money" but then again, some people tell me if you have positive cash flowing to your mail box, it's all good! Any input from you all would be appreciated, thank you!

[Account Closed]

There are short and long term strategies in RE investing. Long term strategies are less effected by current market conditions. Short term strategies must continuously factor in current market conditions.

A buy & old strategy is a long term investment strategy, IMO as long as you are buying right with cash flow in mind you will see appreciation over time. I doubt that anyone can accurately forecast were housing prices will be in ten or twenty years, but my guess is there will be reasonable appreciation over time.

You should become very familiar with your market. IMO it seems that Florida is likely to always be a place to retire. As the economy improves I suspect you will see renewed appreciation in many Florida areas.

So, should you invest in buy and hold. I don't know? You financial situation is going to play a factor in the decision, you should have reserves set aside, the strategy is a slow but steady way to grow wealth.