t’s often difficult for me to watch people my age make property purchases because a house looks flashy or has the Hollywood glitz and glam. What’s even harder for me to watch is people older than me that should be wise beyond their years, make these same mistakes.
While I’m 34 years old, myself, I have a bit of an older taste. Many people have the misconception that I only sell properties to people in my own age bracket, but that’s entirely false.
The truth is the bulk of business is working with people older than myself. And this is probably because I can relate more to them.
eal estate cycles are generally seven years on average. So let’s say you bought a property at the height of the market in 2008 liked because it was fresh and appealing.
Now, fast forward to after the market crash to day. You’d have to sell your home for the same price that you bought it because it no longer has that brand new luster to help it sell.
Instead, you’re sitting there scratching your head wondering why you’re selling your home for the same price you bought it for, a full decade later!
The answer is that there are lots of hot fresh new listings on the market and your house was purchased at the height of the market in 2008 and took a dip for an entire cycle. The market is no longer stagnant, it has picked back up, but the only problem is your property is no longer young and fresh anymore.
So what is the moral of my story folks?
It’s this.
I’m a resale guy. I’m not an emotional guy, and I’m not anything else but a numbers guy.
I love when people buy things that make them happy, don’t get me wrong.
But as a broker I always tell my clients the same thing, what makes you happy and if you can afford it, do whatever you want.
However, I caution them to not be surprised if you don’t make a wise decision and in 10 years when you it’s listed at the exact same price you bought it for today.
I’ve always had the same mentality that you should buy something that you can create value with. If you don’t want to create value, then I urge my clients to at least purchase something that is timeless and will survive changing markets.