How you think about your investments will determine what you invest in.
Personal finance blog Kapitalust explains this nuanced topic using the example of a rental condo.
A condo is probably seen as a worthwhile asset because it costs a lot to buy one.
The price you pay will entirely determine the returns you receive.
If you overpay, you will get dismal returns.
If you’re able to get a great deal, you will get fantastic returns.
Always ask yourself “at what price and on what terms?
you’ve got the option to also think of this concept like Monopoly.
But you don’t just buy stuff because it’s there.
You buy it to make others pay you money.
Ultimately, every investment should be thought of this way.
Don’t just buy something because it looks like it’s worth something now.
Ask yourself if it will bring in more money or value over time than it will cost you.
