To sell the property or to rent it? This is the dilemma I encounter almost every day in my work.
On one hand I do not blame them, on the contrary I admire the courage to think differently and look ahead but on the other hand the problem lies in the fact of not recognizing the market right now and as a consequence it drives them to make the wrong choice. Selling and Leasing I can’t separate from each other because they can’t function without each other.
Selling is equity whereas rent is a financial product of equity. In my daily life I encounter a group of clients who are totally against the sale, and do not even think to sell the property. Mostly these clients find it difficult to think beyond the lease, raising the rental capital by selling what they have for something better and more productive. This is a consequence of what I said above, the ignorance of the real estate market and the fear of any possible failure. There is something else very interesting, some clients are very emotionally attached to the property. Their emotion is related to the first moments of how they acquired that property. Mostly they talk about who was the first tenant and how impressed he was with the way he took care of the property and this makes them even tougher on the tenant market, they are keen to find something like this. The other that is most commonly encountered in the market is when comparing current rentals with the past, without calculating depreciation of the property, and consequently the property stays on the market for a long time. These are feminine characteristics of their wealth, they treat it as something very close to them, something that holds many memories and ordeals in its historical process. But forget about it, the sale itself is in the function of the lease, if you sell your property the most persuasive argument is the financial product it brings out and through this you can set a property price. I always aim to push customers towards sales for a very simple reason, sales coincide with evolution, a time when the “new” has to replace the “old”, everything has a price but the problem lies when and how that price will be at that particular moment. Today new buildings are being built, tenants and buyers are coming up with new claims and these claims are gradually amortizing old properties. A buyer today requires central heating, or thermal insulation from the outside, requiring emergency stairs as well as a parking post in a place where the elevator is accessible. Even a tenant today values more social life in that building and the security it has than the location it can have. Capital is raised through the sale of a property, you have to sell something to buy a better one with a better lease, the banking system today is one of the main pillars of a purchase over the sale budget of an old property.