Don’t rush while buying property. A long time friend and associate of mine, shocked me when he said he wanted to sell his bungalow. His was a rags-to-riches story. He started as an assistant in a developer’s office, became a renowned builder. A person who came up in such a hard way has seen all phases of life and is cautious in his dealings. But to my surprise, his calculations went wrong somewhere along the way.
Another friend of mine, who is a contractor felt that his existing house was too small for him, went in for a bigger house, sold off the old one, sold all his other tenanted properties, took a loan, and completed the new house. Took about three years, lot many things happened in this period – lost in contracts, had some family settlements, some other issues, now he has his house sans everything else.
One of my clients was bent on selling his house, as his bank loan became a burden and he is not in a position to continue his business.
Almost every day I get these types of requests, who are left with no alternative but to sell their houses. Is it that they hurried too much to make a property without taking into consideration – possible setbacks in career, profession? And in a greater hurry to liquidate it, when a problem surfaces?
Yes, people are in a great hurry to accomplish everything as fast as possible! Especially entrepreneurs who set up their ventures, feel on top of the world with their initial success. Don’t rush while buying property. Newfound status, little cash flow, to attract the attention of fraternity, sycophants cheering up false prestige, all these motivate the man to elevate himself to own property, that too exclusively unique one.
He starts hunting properties, finds one, and finalizes a premium one. Many have spent a good great time, money on building this property. Distraction from core business/profession, diverted funds, increased expenditure, elevated lifestyle. One starts feeling the burden now. Income becomes insufficient. Business venture suffers due to several factors, to set the right business, financial liability, the property has to be liquidated.
Property is perpetual, acquire it to retain it unless you are a property trader. As the property is high ticket commitment, buy it only when you can spare money without affecting your priorities and when you have provision for contingencies.