Thursday, February 5, 2015

Why Real Estate as a career?

Q.
People asked me why I choose Real Estate as a life long career? I have below the most pertinent answers.

A.
Real Estate is one of the 4 main basic elements in Chinese saying '衣食住行' as we live our lives. The translation is 'clothing, food, shelter and mobility'.

It is also the biggest single life time purchase to most people. Our population is increasing as a young nation and thus, the up trend is imminent.

It is limited by scarcity of land and resources. Hence, a good property is always in demand to the next buyer, at a higher price.

It is physically lasting, and minimal requirement of cost of maintenance as compared to keeping pets or even mistresses. In fact, bare land does not incur much cost in maintenance at all!

It is always appreciating in value (capital gain). Do you realize that in accounting, plant and machinery depreciate in value over time - depreciation, building and land do not depreciate but appreciate over time, requiring revaluation. Thus, an agent can never really make a wrong recommendation to a potential buyer if it is within arm's length and with genuine market valuation. This is particularly important to me as I do not want to disadvantage my clients.

It is becoming complicated as more patterns and marketing gimmicks are tagged to property sale, hence recognizing a jewel among the rocks has become a harder game for amateurs. Therefore, good agents will definitely fetch good value.

It is a mere 2% commission from market practice and my clients will make any time more than 10~20% profit margin in a sale of property. This is a viable business to my clients, thus a sustainable business venture for everyone and for long term.

There is almost no restriction to own a property, less those who really can not afford (bankrupt) or of unsound mind (as cannot come to a contract). In fact, it is even less restricted than driving. You have to pass driving test to drive! For owning a property, you do not need to show any ability at all - only financially able will do!

Imagine if it is a registered pharmaceutical product, the limitation and restriction to use and sell is tremendous if compared to property.

It is a people's business, and not likely taken over by computers due to the quantum of money involved. This is particularly important as this career is an expanding career, not a constricting one (like financial tools or insurance which are taken by e-commerce).

1 comment:

mubashir hasan said...

thanks for the share this informative and interesting article with us
property dealer

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