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What do you think is the best strategy.. 301 redirect to your existing related site or redeveloping a site on the expired domain?
I'd say redevelop as well.
On a side note, IN THEORY Google will devalue completely any existing incoming links and "PageRank" for a site once in changes hands.
However IN PRACTICE I've personally seen both cases, where it's devalued and where it's not. In most cases however the value will continue through, but ONLY if you put something up as soon as possible!
Matt