It’s very simple but apparently highly effective. It incentivizes the builder, and avoids arguments.
I got this tip from a book. A book I’d highly recomend to any property investor. It contains a lot more nuggets of wisdom than just this one.
Property crash – what’s that?
Never heard of such a thing. Especially not here in Australia.
But, lately, it’s the talk of the town. The hottest topic. Is the Australian property market headed for a US style crash?
Well, let me state right up front – I have no idea!
Does anyone know? I doubt it. Nevertheless, it’s appears to be a topic of keen interest these days.
But, where does this conversation lead?
Doesn’t it beg the question, “What can we – as property invstors – do about it?”
And, I can almost hear your response coming through the broadband cable …
- And, just what do you mean by success?
- What’s your definition?
- Is what you call success, what I call it?
- And, success in what? Property investing only? Or in other areas as well?
Well, I have an answer that transends all these questions.
Again, I can almost hear your line of questioning continue …
- Does it answer success for property investors? (Yes.)
- So, it can be applied to property investing, right? (Yes.)
- Can it be applied across a wide swath of areas? (Yes.)
- What are the limitations of this answer you have for me? (None.)
And, now, I can clearly see you standing akimbo (hands on hips, elbows out) saying to me …
“Ok, show me what you got!”
Shares (stocks) or property … which is better?
That’s been a loaded question for as long as there’s been shares and property. So, we’re talking … a long time!
Now, that we’ve got the question out in the open, let’s look at it. Let’s analyze it, let’s see if we can do something with it. Make some sense of it.
First, I would suggest that it’s difficult to get a proper answer from most “experts” because they’re biased. They either prefer shares or property. And, the one they prefer is the way the argument goes. If they prefer shares, somehow shares is the better investment. If they prefer property, then magically property becomes the way to go.
So, here-in lies the quandary. What to believe? What to make of all the arguments?
“Oh, you don’t want to buy that home. It’s in a low lying area and is subject to flooding. And, it’s got a lot of other problems. Stay away from that one.” The agent explained to me as if she’d written it down word for word.
We’d just driven by the house and I mentioned that I was interested in that property. Now, I was wishing I hadn’t said anything; wish I kept my mouth shut.
But, too late. She’d planted the seed. I never did look at the property again; never really seriously considered it following that negative onslaught from the agent.
Now, I drive by that house almost every day. You see, it’s two doors down from my house and it’s a beauty. It would probably sell easily today for upwards of $750,000. When I was interested all those years ago, it was selling for the mid $200k range.