Opportunity In Any Market

Opportunity in Any Market

I remember back when Paul and I first got into the Real Estate Market in 2008.  It was after the U.S. Leeman Brother’s default and our market had slowed and corrected here in Toronto.  It dipped by approximately 25% for properties in the GTA and 10% in the City of Toronto proper.  We were young, inexperienced, and had not yet obtained our Real Estate License.  We thought to ourselves ‘Why not do the opposite of what everyone else was doing.’  In truth, we didn’t know exactly what we were doing, but we wanted to buy our first property.  

We ended up in multiple offers for a beautiful two-story loft in the Creed Building we fell in love with - located in the Annex.  It was our first real estate experience, and we were represented by a great real estate agent, and somewhat of a mentor for why we got into real estate the following year.  We bid with some ego and confidence and lost that property by $2500.00. I lost sleep over that one.  We never made that mistake again.  In our 13 years of experience, we have never seen a Buyer lose a property by $5000.00 or a nominal amount and not regret it.  But we all go through our losses and lessons. That’s life.  

The second property we bid on was a luxury boutique condo in the Yorkville neighbourhood.  We found ourselves in competition again, but this time we weren’t going to lose it.  We outbid our competitor and probably overpaid by about $10,000 for this condo.  What a great investment it turned out to be.  We are glad we got in. And that is how our property ladder climb began for us.    

We learned some lessons that year.  Green and inexperienced, we learned that hot properties are hot properties.  No matter what market you are shopping in.  And sometimes you win by overpaying because the investment nets positive in the end by just getting in (disclaimer: there are limits of course. Know your numbers). We also learned that egos don’t bode well when buying real estate.  Know your goals, know your numbers and info and be clear about what you want, with the big picture at the forefront. Analysis paralysis can keep people fearful and maintain the status quo. Always work with someone you trust. And someone who knows way more than you do. And sometimes, don’t be afraid to go against the grain.  Do what others aren’t doing. It can pay off as well.