When it comes to make decisions regarding to Real Estate, we face a long and exhausting period of research, analysis and reflection.
We all may have in mind Paul Getty’s famous quote: “If it appreciates, buy it. If it depreciates, lease it”. Real Estate properties are among the goods that trend to increase their value with time. But is that fact a sufficient reason to buy and maybe invest the savings of a lifetime in a property?
Here are some well-known advantages of each trading figure:
- You are investing in something that will become your property and later on it can be your source of capital for further acquisitions.
- You can make the changes and adaptations you need, in order to satisfy your home or business requirements.
- If after some years you want to move, change your business or buy more Real Estate, your current property can serve as a guarantee.
- Nowadays, leasing contracts give you plenty of choices to change or adapt the place, in order to fulfil your needs.
- You have also the opportunity to buy, when the leasing term finishes.
- If your life or business goals completely change, the property won’t become a burden.
As you can see, appreciation and depreciation are not determinant facts. The most important is to define what you want, what you need and how much flexibility you want to have.