The Only Time I Regretted Buying a Property

Real estate is often hailed as one of the safest and most lucrative investments you can make. The potential for appreciation, rental income, and tax benefits makes buying property an attractive option for many investors. This is why I have accumulated many properties of my own and will continue accumulating them.

However, there was one time that I regretted buying a property: I purchased a property, for which I borrowed money to buy it and borrowed money to renovate it. I then planned to sell it in order to pay back my obligations.

Things changed quickly after I bought the property. Unforeseen circumstances surrounding the renovation (and working with the city permitting process) put huge delays in the project. Then as I was dealing with that, market conditions changed and the formerly hot seller’s market had started to cool off.

As the days went on, the need to sell the property started to increase markedly. I was facing monthly payments to service these loans that were very high.

The financial pressure that comes with needing to sell quickly can be very frustrating and overwhelming in some cases. In real estate, being forced to sell within a specific timeframe almost always puts the seller at a disadvantage. It often means you can’t wait for the best offer or market conditions to improve.

Instead, you’re left hoping that the property sells fast enough to avoid additional carrying costs, maintenance, taxes etc.

In my case, I had to list the property during a market downturn. Property values had dipped, and there were fewer buyers than I had anticipated. Instead of waiting for the market to recover, I had to list the property at a price lower than I had hoped, just to attract buyers in a sluggish market. Watching the offers come in at prices well below what I expected or needed to make a profit was frustrating and disheartening.

Real estate investment can be incredibly rewarding, but I learned a valuable lesson with this project. You always want to put yourself in a position of having flexibility to ride out the ups and downs of the market. The only time I’ve regretted buying an investment property was when I didn’t have that flexibility!