Plan B

NOTHING beats ownership… IF IF IF you can afford it.
And if you’re dumb lucky… as I was…then my property (condo) almost doubled in value in 5 years.

I’m not convinced it is “dumb luck”.

Recently I was talking with someone who is considering buying a US$500,000 property in Troncones. They are doubting themselves.

They said they have owned several dozen properties over the past few decades.

I asked how many of those times they lost money. The answer was zero.

Yes, putting money into real estate for two or three years is speculation. It is illiquid and property values can drop. I think that putting money into real estate for 10 years or more is an investment strategy that has been largely favourable.

It’s not why I bought it.
I didn’t even see it as an ‘investment’… well maybe an investment in my health and we’ll being…

My view WAS that there were three aspects.

1. Enjoyment of property.
2. Revenue.
3. Capital appreciation.

#1 was the most important and it has more than fulfilled that goal.

#2 has been a disappointment. Costs have been much higher than I expected and revenue less.

#3 has been embarrassingly fulfilled.