Not losing money is as important as making money

//Not losing money is as important as making money

Not losing money is as important as making money

There are of course a lot of ways where we could lose money … but the big three are:

  1. Buying the wrong product
  2. Not understanding the system/jurisdiction you are in
  3. Buying without subject when you have not sold your current house yet.

For instance, if you had bought a regular condo (unlimited personal use) in 1998 in Whistler you would have seen values overall double, but had you bought a Phase 2 (limited personal use) condo … you would be just even. BUT, had you bought a quarter share you lost 40% or so and had you bought a hotel unit you lost 60% and more.

Also, people think that time share is real estate. It is not! It is a holiday purchase. Imagine you convert a 200-suite building into timeshare, you need to sell 10,000 weeks. The developer is forever in competition with you.

In every hot market – as now – there is pressure to buy without a subject-to-sell clause. At the same time owners are often told there is not a problem selling their existing house. I have seen it in every downturn. People get stuck with two houses, high rates and/or two mortgage payments.

By | 2015-08-22T11:33:06+00:00 August 22nd, 2015|Hot Tip|0 Comments

About the Author:

Ozzie helps members build an action plan toward real estate success with his Real Estate Action Group, arming investors with the best information and insights possible with his Jurock Real Estate Insider. More info

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