i was wrong🤭
For the past few months, I was under the impression that the condo prices in Toronto is way over-priced. The sentiment from not only investors but also top agents FELT it was over-priced!
This weekend, Great Gulf held a 6-day sales event to move the remaining inventory of their existing projects. This event was very unique because: - event was by appointment only. - prices and floorplans were revealed only at the event. (nothing before-hand) - first come, first served.
These tend to be very good events for end-users. However, I couldn't help but feel that the event would be slow unless the builder came out with exceptional prices.
Turns out I was completely wrong.
The units were priced competitively (about 15% lower than market price). Still I was skeptical. Given such bad sentiment from most of my friends and investors... I thought this wasn't good enough. I wasn't sure if this was a good opportunity.
Then, I find out that on the first day alone, all one-bedroom units were sold out.
SOLD OUT! 😳
(red dots mean sold)
More details on price: - 357 King St W: $1000psf (one-bedroom) - 8 Cumberland: $1450psf (one-bedroom) - Monde: $1000psf (one-bedroom) - Home (Power + Adelaide): $920psf (one-bedroom)
(did you hear about the Central Condo's price? $1400psf for one-bedroom....)
(compared to Central this event was really good value)
I was stunned. 😲 I couldn't believe it. So I asked around,
"How is the sales event is going?"
and one of the persons from Great Gulf said:
"This event is going surprisingly well. We didn't anticipate this much demand from the market."
another top agent I met at this event said:
"This is not very surprising. Given the nature of this event, by appointment only and the fact that prices were revealed only at the event, it was like the smell of blood for the sharks. 🦈"
(he called experienced condo investors sharks). (he went on to explain how the rich continues to make money and how the poor stays poor.)
This reminded me of the book 'Rich Dad, Poor Dad' by Robert Kiyosaki.
Then everything made sense.
Let me explain.
Fundamentally, the rich and the poor think differently. You should read the book if you really want to be rich. I read it a few times and I highly recommend it.
To apply the fundamentals of the book to condo investing, read the following and see if you are the rich or the poor.
The rich: - understands the condo game. - understands the risk is very low. (for the past 15 years, the condo price went up.) - are always looking for opportunities. - have a positive outlook. (because they made a lot of money previously by playing the condo game.) - are always ready to buy. - makes money because they act quickly.
The poor: - always think that the market is over-priced. (negative outlook)
For the past 15 years, the condo price continued to rise, always breaking previous year's record. this means that every year the poor thinks it's too expensive, because it's higher than last year's price! and they've been proven wrong every year...
- focus on the past price, how they should've bought. (instead of looking at the future opportunity) - does not understand the condo game. - thinks that the risk is too high. - think the market is going to crash. - doesn't see the opportunity even when presented with a good one. - looking for something that doesn't exist.
Which one are you?
I came to a realisation that I was acting like the poor... Even when I made lots of 💰 from investing since 2009! Even when most of my wealth was generated from real estate, and that I got into this business because I saw the opportunity and the potential in real estate!!!
This begs the questions, then how can you shape yourself to become rich?
You gotta think like the rich.
I will cover more on what I mean by that. In the meanwhile, I hope that you can reflect and objectively assess yourself.
Lesson of the day,
Don't miss out on opportunities because you didn't recognise it.
Stay tuned for my next email.
" I'll do the analysis, You make the decision. "