Real Estate Investment Lessons from Warren Buffet

Posted on Leave a commentPosted in Investment, Real Estate

All of us, desires of investing into Real Estate. There are far too many conflicted Idea’s floats in our mind preventing us from thinking rationally.

Should one Invest in Residence/Office/Farm House/Open land etc?

Whether price I am paying is correct?

What are the upside of the area?

We have set of rationals for each kind of investment. Mostly we desires to invest with a view to make huge gain in coming years.

Objective is very clear.

Confusion only starts when we steps into periphery benefits and ties each probable decision to cost/benefit of each sub set of real estate investment. Since, every one feels that in last Tezi…he/she lost out on golden opportunity, while assuming that in long run real estate pays best return, our mind becomes fuzzy.

But, when it comes to taking a final decision, market dynamics influence our thinking way beyond our imagination. We expect market to go down further, again, prospect of Modi becoming PM, and surge in Indian Economy from June Onwards, conflicts our view. Confusion multiplies, when we hear the stories of Builders in liquidity trap or discount available in the market. Variations to the above reasons, prevent us from thinking straight. At this juncture, I am not even referring, need for liquidity, legal cost, combination of cheque/C*sh required or how  asset is going to be used or would it generate regular income or would I be able to enjoy it..

There are plenty of reasons, alas, we freeze.

We all know Warren Buffet to be Wizard of Stock Market. But, in the upcoming issue of Fortune…he brilliantly outlines his investment philosophy based on his two Real Estate Investments.

Its Must Read…

Some other day, we can discuss the lessons in detail. Though, to achieve his level of clarity in thinking is extremely difficult, yet the article debunk far too many myth that we carry in our mind.