For today's topic on personal finance we will discuss -- perception. Would you like to buy a 2bdrm condo near the downtown core of a city that is located next to museums, shopping, cafes, and of course convenient city transportation; or would you prefer a 2bdrm condo near an airport, major highway lanes and close to 30 storey office towers?
Without even seeing the prices, images or by learning other details of the units then I'm 100% certain that you would have picked the downtown condo because of its 'perception' of being cleaner, quieter and being more rentable.
Well, let's talk about what our perceptions can actually do to our decisions. Let's take the example that I recently came across while travelling in New England. I was driving for 3 hrs straight up US 1 and I noticed that all of the hotels were saying No Vacancy. Now I know that this is busy tourism season, and I know this is the lobster season for New England, but what was one of the main reasons for seniors being attracted to this area in the summertime? Well, I would have to say the perception that Maine Lobstah are the best Lobstah's in the world. Am I wrong? Hmmmm.
Oddly enough, I found out that the supposed Maine Lobstah's that everyone was drooling over were actually packed on ice and shipped up direct from their northern neighbor Nova Scotia. Perception. Great Lobstah equals Maine. Reality. Great lobster equals being fresh from anywhere dipped in garlic and butter sauce.
Remember kids, when you're making an investment property deal or evaluating a deal be sure to get facts and not perception.
Until next time.