Tom Kunz, CEO of Century 21, is not worried about the paper loss on his [tag-tec]residential property[/tag-tec].
Why? Because he’s still $700,000 ahead. His property can still be considered in the category of successful real estate investing. He’s not worried.
So what about the loss? $200,000 is a lot to lose, right?
From Kunz’s standpoint, he hasn’t actually lost that much. He only turned down the chance to sell the house at the peak of the last market frenzy at an inflated price of $1.3 million. (Last week, a similar house in the neighborhood went for $1.1 million).
Is he privately kicking himself ?
We’ll never know that for sure, but from my point of view, I think not.
Considering the fact he bought the house for $340,000 way back in 1998, it’s my opinion that piece of residential property has fared well. There has still been plenty of property appreciation. He’s happy with that.
Here’s the point I think a lot of amateurs still miss.
Real estate is not the stock market. It doesn’t move like the stock market. Real estate is a tangible asset. You can get your arms around it. It’s real.
You can have a tactile relationship with it as an [tag-self]investment[/tag-self]. That’s one of the reasons why I love it so much.
Because of that you can’t exactly judge successful real estate investing based on today’s numbers or how much it goes up and down by the hour. It doesn’t function like that.
Yes, it moves in cycles, and heaven help the unwary investor who isn’t sure which cycle it’s in. But Kunz knows the real insider secret. His house is a good residential property with plenty of future property appreciation.
Will it go up again as fast as it did last time? Maybe not, but it will go up eventually and, in all probability, will even surpass yesterday’s $1.3 million price tag at some point.