The question everyone wants answered: Should you hold or sell?

It’s the question this property expert gets asked constantly: Should I hold or sell? And, it’s never been more pertinent than in the current market uncertainty.

We’ve all heard the chatter about Anthony Albanese and Peter Dutton’s sizeable property portfolios — and this was before the federal election was called.

If you haven’t, well, let’s just say that between them, the Prime Minister and his Opposition counterpart have millions of dollars in property investments.

Each of them has invested well over the years and built impressive property portfolios.

In fact, most recently, the PM was in the news for acquiring a $4.3m clifftop mansion in the NSW Central Coast township of Copacabana.

He’s since opted to rent it out for about $1500 a week.

James Fitzgerald, managing director of JLF Group.

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Mr Dutton on the other hand, is said to have made $30m in property transactions over 35 years.

In recent years, the leader of the Liberal Party and his wife, Kirrily, offloaded their property portfolio — only retaining one property: a 68ha farm in Dayboro, Queensland, purchased for $2.1m in August 2020.

Their transactions over the years, lead us to touch on the obvious investment question — one that I get asked multiple times a day: Is it better to hold or sell property, and when is the right time to do it?

Given the current market and the state of the economy, of course, I understand why the question would be asked, but the truth is markets are cyclical. I mean, if they were entirely predictable, everyone would be rich.

Australian Prime Minister Anthony Albanese on the campaign trail in Victoria. Picture: Jason Edwards.

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Time in the market beats timing the market — no contest.

Every successful investor, from Warren Buffett to that random guy who got rich selling NFTs (just kidding) — has said something like this.

Let me tell you why. One of the biggest mistakes investors make is obsessing over timing the market, hoping to buy just before an upswing.

The reality is that this strategy rarely works.

Why? Because most people underestimate compound growth — the real secret to wealth.

The longer you hold your investments, the more compound growth works in your favour.

The property in Copacabana, NSW, that Anthony Albanese and his fiance Jodi Haydon have bought.

It’s like planting a tree and watching it become a forest.

Consider this: An asset worth $100,000 growing at 7 per cent per year will double every 10 years.

This is the “Rule of 72”: divide 72 by the annual rate of return and the result gives you the number of years it will take for your investment to double.

But here’s the kicker: that doubling effect gets exponentially more powerful as time goes on.

The first 10 years? Your $100,000 turns into $200,000.

The second 10 years? $200,000 grows to $400,000. In the third 10 years? $400,000 becomes $800,000.

The money multiplies like rabbits — and that’s why time is a property investor’s best friend.

Last month, my wife and I bought our ninth investment property. Did we buy it because it was the perfect time? Nope.

We bought it because we could afford it, the bank lent us the money, and we were confident we could handle the cash flow.

We’re in this for the long haul. We’re chasing time in the market, not the ‘perfect timing’.

Federal Opposition Leader Peter Dutton at his Dayboro farm. Picture: Zak Simmonds.

We plan to hold these properties for more than 20 years.

The sooner we start, the sooner we get to year 20. Simple as that.

Show me someone who’s built wealth by flipping properties, and I’ll show you five who’ve done it by buying and holding — and yes, I’m counting their imaginary friends.

Now, don’t get me wrong. This doesn’t mean you should buy just anywhere, at any time without consideration.

Markets cycle, and there are dozens of micro-markets within the Australian property landscape.

If you’re buying, it makes sense to direct your investment toward areas that are more likely to appreciate in the short to medium term.

But that’s a whole other thing — from trying to time the market and holding off on buying when you can afford it. That’s not strategy; it’s procrastination.

And trust me, it’s a foolish strategy.

James Fitzgerald is a respected Australian property expert with more than a decade of experience in residential and commercial real estate. He is the managing director of JLF Group.

Originally published as The question everyone wants answered: Should you hold or sell?