The true performance of real estate lies not in the sales price, but in the consolidation of the total asset value.
Being aware of what we are doing and why we are doing it in all our activities is extremely important for achieving effective results and creating attractive value. What is important is being able to manage emotions with reason and common sense, and to guide the process with a strategic perspective.
Being aware of what we do and why we do it in all our activities is extremely important for achieving effective results and generating attractive value.
The same is true in real estate asset management.
What is truly important in the sale of a property? Is it simply the sale price of the property, or the final asset level achieved as a result of managing the income generated from the sale?
To illustrate:
If we sell a property at 10% below the price we could sell it for in 6 months, and if, for example, the property we are investing in appreciates by 20% in the following 4 months, we will have shown a 10% net increase in asset value in consolidation.
Even though we sold the property at a 10% lower price.
In the buying and selling of real estate, the most valuable tangible asset in life, emotions inevitably play a role.
The important thing is to manage emotions with reason and common sense, and to guide the process with a strategic perspective.
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