In 1992, I had plenty of advice when I bought my first property. Especially prominent in that advice was my father (also my broker at the time), who was not too particular about me buying a condo for my first property. The sage advice he gave me was that resale was better on single family homes, and at that time it was. At that time condos made up only 5% of the market.
I looked for houses, and although prices back then were much better, there was still nothing really good in my price range. So I began to evaluate what I could do without:
Going out with friends? No.
Smoking? Yes (I eventually did quit but not because of the place I bought).
And so on.
It was apparent that my lifestyle was worth more to me than following the real estate trends at the time. After doing the math it was clear that if I got a roommate, I could afford my condo and maintain a good lifestyle (minus some trips to vegas with the boys).
So it was with that I gave my dad his sixth and final disappointment.
I didn’t golf,
I didn’t curl,
I didn’t hunt,
I didn’t buy a Cadillac when I could afford to buy a nice vehicle (this was never a formal disappointment but he did tell me I couldn’t be successful in real estate in an SUV),
And of course I bought this condo.
It happened to be one of the best investments I have ever made.
So remember, when you're getting that sage advice from the experts of yesteryear, don’t completely ignore it, but weigh it against the future and how you want to live. In the end every sage of yesterday has their experience rooted in the past, and if 2007 has taught us anything, what has happened in the past don’t mean a hill of beans.