The 10-Year Hold Strategy

Property is highly illiquid. Frictional costs (stamp duty, agent fees, capital gains tax) destroy any returns generated from short-term flipping.

The Math of Friction

If you buy a $500k property and sell it a year later for $550k (a 10% gain), you will likely lose money. Why? 5% entry costs ($25k) and 3% exit costs ($16.5k). You've made $8.5k before capital gains tax, while taking on massive leverage risk.

Property only works through compounding growth over a minimum of 10 years, amortizing those entry and exit costs over a decade. See Yield vs Growth.