By Gerald Tay (guest contributor)
We’ve covered Property Valuation utilising powerful ratios – CapRates, Cash-on-Cash, IRR, NPV, and MIRR in previous articles. Although these five ratios are seminal to measuring a property’s value, your attitude is no less critical.
There are a number of behaviours that almost guarantee losing in the real estate market. These behaviours, the antithesis of the way The Master Investor operates, include:
Investors try to buy and sell in the cycle, in the hope that they will be able to “time” their investments to maximise profits. A desire for quick profits blinds investors to the real hard work needed to win.
An example of bad investing is buying off-plan properties and trying to offload them before or after the T.O.P, in order to catch ‘profits’.
Fat, drunk and stupid is no way to go through life, son. – Animal House