Decisions in practice
What could change the decision.
Three situations where the property alone does not give you the answer.
01 · Portfolio concentration
A good property can add the wrong risk.
A client is considering another waterfront property. They can comfortably afford it, but several existing investments already depend on the same buyer market. I would question whether another purchase improves their position or simply adds more of the same risk.
02 · Hold or reallocate
Would selling leave you better off?
A property has risen in value, but its rental income has barely changed. That is a reason to review the holding, not an automatic reason to sell. I would compare keeping it with a specific alternative, accounting for the costs of switching and each property’s income, growth prospects and risks.
03 · Price and capital timing
A lower price can tie up more capital.
A secondary property costs less than a new launch, but requires more money upfront. I would first test whether the price advantage is real, then weigh it against committing that capital earlier. The better choice depends on the properties and payment dates, not just the asking prices.