I just realized now how fitting it is to identify our home by its “address”. Just like “a dress” it reflects our style and personality. We usually choose a home that fits our needs, wants and lifestyle…similar to how we select our clothes. We both invest in our clothing and our homes. The only difference [...]
A few years back a lot of homeowners got obsessed with how much the value of their homes appreciated. The equity in their homes translates to “savings in paper” which they can use to finance another property, a holiday or their retirement. Even if some homeowners did nothing with that equity, it still gave them a feeling of financial security that they are actually richer than when they first bought their property.
However in recent times, that sinking good feeling had turned into financial insecurity and even bankruptcy to some. A lot of people are complaining how they lost a big chunk of the value of their home.
Thus, we sometimes wonder “What is really the true value of our home?” Is it the price we bought it for? Is it the valuation a few years back when prices were high or does today’s prices reflect the real value of our homes?
I remember in business school, we were asked by our professor “Which is the most important department in a business; finance, marketing, operations or administration? There was no right or wrong answer, but we had to justify our choice. My answer was marketing. Even if I don’t have the money, I can market my product [...]