What’s The Best Advice You’ve Ever Received?
After a little bit of blogging about sending thank-you notes online, a comment I left was picked up, and run with, about whether your parents, or grandparents, would approve of the stuff you’re doing on the internet. See it here.
But this little exchange got me thinking about advice we have received from our elders. So here is an open question for all:
What is the single best piece of advice you ever received?
This could be from your parents, grandparents, a teacher or mentor. Just tell us the advice, and why it was important to you. Find mine in the comments section!
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My dad told me this piece of advice, which he had received from his father.
Essentially, what it means is this: never consider property to be an asset. Real property is a liability – until you realise this asset (by selling it) you will only ever incur expenditure from owning property.
In today’s age of buying property and developing, people would do well to remember this. On paper is just that, on paper. Its only worth anything when the money is in the bank!
I cannot help but comment on this. I respect your belief but let me entice you with my explanation. My proposition, “Not all property/ies are liability”
A land that can be cultivated with crops gains money more than the price of the land itself over time. So how would that be possible that piece of land is a liability? Unless you are buying land in the desert I assume that is indeed a liability. How about residential house and lot? Yes, it is not gaining money, but it is gaining comfort. It means you bought comfort of your own home. And when the time comes when you want to move out, then you can sell it or let it prosper in realty cost. Maintenance of it is a burden but the profit > expense should be managed by the property owner.
Price of land is the initial value of land + property price increase in a period of time
check you again on your thoughts
I think you miss the point – that being that personal property should not be considered an investment. Yes, buy a house, but don’t expect to earn from it. I’m not a farmer. Furthermore, the current economic climate readily demonstrates that expecting real estate values to go up is a dangerous notion: many people right now are being burned by negative equity. Try telling them their property was an ‘investment’.
Naturally there are exceptions, but don’t they prove the rule?
rob think again. yes the recent years home owners have incurred neg eq. however, for many many many years prior to this real estate bust, home owners have reaped some great profits from home ownership. risky loans, overpriced homes, and over financed homes resulting in excess debt has put many in upside situations. take care.
Whatever you reckon. But that pales into insignificance once you have to re-roof your house. Etc.