The lifestyle factor and why it matters
Nearly every transaction in real estate happens because of lifestyle – a fact investors would be wise to remember even in a downturn, a prominent property expert has advised.
Speaking on a recent episode of What’s Making Headlines, real estate trainer and auctioneer Tom Panos told Smart Property Investment’s Phil Tarrant that very little of the psychology related to people buying and selling houses has anything to do with monetary value.
He shut down the idea that real estate “is all about how the economy is going”.
“Only a small group of people make decisions based on money,” he stated.
“The majority of transactions happen for the following reasons: People divorce and the house has to get sold; someone dies and it’s a deceased estate; sometimes people move to be in the catchment of a school; other times people have decided they want to go live in Bangalow,” he listed.
“There are other times where people say, ‘You know what, I’ve always wanted to have a snooker pool table, and I want to get myself a jacuzzi and pool’,” Mr Panos continued.
Nearly every transaction in real estate happens because of lifestyle, he advised, and as a result, the real estate trainer said “it doesn’t matter what the economy is doing”.
“Because if the market’s hot, guess what? When you sell, you’re getting a hot price, but when you go and buy six weeks later, you’re paying top dollar,” he mused.
“If the market is shit, guess what?”
“The money I make may not be good, but guess what? When you go buy, you’re buying a bargain as well!” Mr Panos added.
“You sell cheap, you bought cheap.”
On the same Facebook Live event, Mr Panos expressed the belief that “we’re about to see the best buying opportunities in the last decade”.
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