Do what I tell you, not what I do! What?
"Listen to what I tell you to do, don't do what I did!" said Chris as she came into my office one bright Tuesday afternoon head in hand. "Don't buy old properties like I did Lynnie, just buy new ones."
Chris went on to tell me how one of her old faithful's in Rocky has been causing her some grief, pool filter problems $2K, air conditioner broken down $2K, stove not working and needing replacing which then has a roll on effect to the rest of the kitchen...$$$$$$.
So, after I listened and said “there, there” Chris went on to coach me yet again (thank you, thank you) about the math of how property (regardless of whether it is rented straight away, finished on time or any other obstacle that could get in my mindsets way) will always come out in the end positively just through sheer time and economic growth. The bonus, as we all know well now, is when you buy new, you get that extra kicker of tax deductions come tax time which helps to keep filling the pot.
Craig and I started our property journey without equity, we had a small amount of cash and we have had to literally save our pot. I will never say it's been easy, but I can honestly say I know so much now thanks to Think Money. Our future is set and looks pretty great; we will have more than enough for retirement and the kids will be well educated on the benefits of buying property and plenty of it to create wealth. If you have equity make sure it's working for you - not sure what I mean? Come in and have a chat.
Chris, reading this before I hit the send button, mentioned 'on the upside' the property still grew in value by $200K in the past few years which offsets the expenses. Wouldn't have the expenses but would have had the growth if she had bought new in the first place!
Ahh the education never ends!