Real estate investing is one of the safer investments that one can make when playing around with big money. While it may be safer, this does not mean that it’s easy and that anyone can do it without some knowledge. Below, four of the most famous investors of all time offer advice and tips for getting the most out of your money and investment period, and it all relates to real estate.
“An investment in knowledge pays the best interest.” – Benjamin Franklin
Ben Franklin, a founding father of the United States, a renowned inventor, scientist, publisher (and the list goes on), was an intelligent man. When it comes to investing, this quote by BF communicates how important it is to do your research before you make an investment. When it comes to investing in property in Thailand, you can never be too prepared or too knowledgeable. If Ben Franklin were around in Bangkok today, surely he’d do his best to fully understand the goals of a developer and the potential of the area while making calculated predictions on the city’s future.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Warren Buffet
Warren Buffet, a legendary business magnate, known as the most successful investor of the 20th century, can teach us all a thing or two. One of the most common statements he is quoted on is this, and it translates well to property. It is better to buy a great property, in a good location at a price that is fair for the area, than it is to buy a so-so property in an inconvenient place for a low price. Just because you can afford it doesn’t mean it’s a good investment.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Phillip Fisher
While Phil Fisher, an American stock investor specialized in stock investing, his advice rings true to real estate investing as well. In this quote, he makes a clever differentiation between price and value. Any property of a low price might be affordable to an investor, but it will most likely not provide the same kind of return as a property in a great location; with well-kept amenities, etc. When investing, you must look deeper than the price tag and dig into the true value.
Know what you own, and know why you own it.” – Peter Lynch
Yet another famous American businessman and stock investor, Peter Lynch gives us all something to keep in mind not just when we are making the investment, but when we are waiting it out. He advises to make sure you are secure in the concept of the investment from the beginning, and can constantly assess its progress for the right reasons throughout the period of the investment. Setting a goal to stay grounded will help you wait out whatever negative market situations happen. It will also help you keep up your motivation for how to manage the investment. For example, if you know you’ve purchased a condo in an up-coming area because you intend to sell it when the area gets more popular, you must remember to be patient and not sell at the first sign of surrounding development. Alternatively, if you bought the property to rent it out, do not get lazy about it and sell or decide to live in it yourself. You can always make it work if you have the motivation and momentum.
