Have you ever had to let go of something special, something that you have created with your very heart and soul?
Having a financial plan is one thing, but executing it properly is another. It seems that most of us have “emotions” that continually get in our way.
One of our “businesses” is building a house, living in it for a couple of years, then selling it for a profit without any significant tax consequences. With home values skyrocketing, we easily exceeded our pre-determined price target, and it was time to sell.
We had built a quality home that was sophisticated yet comfortable, and it had a gorgeous view. Further, the small pond we added attracted a vast array of wildlife that constantly entertained us.
How do you put a price tag on watching the deer grazing, or the cardinals competing with the squirrels at the feeder, or hawks circling overhead? How do you value watching a spectacular sunset created by the Master Painter while sitting at your dining room table, listening to the croaking of the frogs as they basked on a lily pad?
If you had woken up just once to the sound of the waterfall trickling into the pond as the birds sang their greetings to each other, you would have understood our dilemma. This was a truly special home that would not be easily duplicated.
This was in the spring of 2005, and there had not been much discussion about a “real estate bubble,” so only time would tell. In the end we decided to stick with our plan and sold, capturing our “paper” profits. A temporary rent would have to suffice.
When Sir Allen annouced glibly that “the only people who will get hurt are the last ones to buy”, we concluded it was time to sell. The appraisal process gets skewed, and markedly so. Why?
Would you buy at retail or prefer to buy wholesale at 50 cents on the (inflated) dollar?
It’s just common sense.
While we had many fond memories of that beautiful home, we do not want to be obsessed with looking back over our shoulder. Building homes is a way of life for us, as we enjoy the creative process. We are grateful for all life’s blessings that have been bestowed upon us, and being optimists by nature, eagerly await the next opportunity that most assuredly will come our way.
Want to change and improve your financial situation? Browse our site for some ideas that may help you break away from your current self-imposed limitations.
Distressed properties abound in this market, and the pendulum has swung the other way.
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