Rising Land Prices and My Investment Experience

Gather round, dear dynamics of the free market economy! I'm telling you, KY (short for small investor: they may be using it to minimize the small 🙂 ) listen up! #bist100 #bitcoin #altin #dolar etc. What I am going to tell you now is a personal experience that has been lived and continues to be lived. Those who wish can make their own share and if they see the benefit, they can pray.

There was a region that I have been following for 1-1.5 years to buy land, so to speak, with the detached house fury that the pandemic has especially stirred up. Since I am not in a hurry, I am patient to buy the land I plan to buy at the right price. This patience was taught to me by a failed land investment experiment I made 7 years ago. Therefore, I feel that I have to eat the yogurt with my mouth full.

The reason I call it a failure is that I still have the land, but I'm not exaggerating, I will probably hardly sell it for the price I bought it for. Even though the price I got is the same in quantity, it is obviously not the same in value. Especially don't talk about value calculations in the form of inflation, gold or dollar equivalent. Even the second hand of the vehicle I was looking at zero at that time became 6 times more valuable.

Now I know the question that comes to your mind: You were saying My Name is Money, what happened? Well, these have all been experiences and I am trying to share these experiences with you. I fell and I survived well! But we have children, we have children, we have children... (Greetings to the uncle who fell into the stream, for those who don't know, I can suggest that they search on Google instead of leaving a link, because the uncle's mouth can be a little bad, don't pollute our content)

Now I am scrutinizing to avoid making the same mistake again. I will no longer buy without seeing the location with my own eyes 😀 That's right... I went and bought that land without ever seeing it. In fact, it was 5 years ago when I first went to see it. There is always a cliché in the mouths of stockbrokers "you don't buy without looking at the land, you don't invest, right, think of the stock in the same way, research the company and so on." Look, I didn't even look at the land, would I look at what the company does?

If we were afraid of iron, we wouldn't take the train!

Don't look at me, I can be a bit interesting. As they say, do as I say, not as I do, I think they said that about me.

Anyway, I'm getting too long, we're getting off topic, so let me wrap up.

What happened is that the prices were around X TL in the advertisements I looked at before the pandemic last year. There was no bargaining that I threw at that time. I met with a few places, it didn't happen, etc., and this X TL started to rise day by day. While I was wondering if this rise was related to the region, places that did not make money started to rise at similar rates.

Thinking that this rise was an artificial rise, I kept waiting and postponed my needs. I confess that I felt sad inside. While I was thinking that I was missing out on opportunities, I realized that the advertisements of the same places keep circulating in the market.

Some of the advertisements are probably advertisements of those who are looking to buy and sell with the intention of making money from this business, that is, they have bought it and raised the price so that it goes at a more valuable price, but almost all of these lands continue to remain in the advertisements. I am very serious! The prices of the same advertisements are now 2X TL. From here I understand that without exception, none of the advertisements have been bought for more than 1 year, even if their prices have increased. If they are bought at all 😉 You are the ones who are awake...

I am generally in contact with real estate agents. Every advertiser/real estate agent I call tries to approach me with sales tactics such as "Abi, don't miss these places, prices will fly". Oh, brother, have mercy, prices have already skyrocketed in 1 year and they still say they will. Normally, if there is no special zoning situation, they compare the increases with TUFE/dollar/gold, but the reality is not like that. We are reminded again by experience what the word "real inflation" means, which is in the language of economists and is often used by politicians. The increase in prices has different rates than those on paper...

Now that we have noticed these increases, let's try to interpret this situation a little bit. Now, the supply of land in the region is clear, in other words, I am referring to the land for sale. There is also demand with the pandemic, so far so good. But the money to be paid by those who demand is also certain, dear brother. Do you expect people to say that at every price you write, okay, this is the new price, so let's buy at this price. Look, this is actually an example from the stock market again. You know the KY that buys at the top of the chart. These brothers actually have the same fate as that KY. Either the goods will remain in their hands or they will have to sell below the price they bought. Or they will hope and wait for years for the price to rise. How familiar is this story?

I know Italy very well because of my work. We are living in the same situation as it was 15 years ago. How vibrant was the construction sector in our country until the last 2 years ago? The same thing happened there. It was the same there, but it has been dead for 15 years. This real estate bubble was inflated there too. The prices of 500K € places are now down to one third.

Allah is the Almighty!

When this bubble bursts, then you will see how the cards are reshuffled. We keep saying it's a developing world. It's not like that, brother. Look up, it's always the same scenario, always the same record. There is no need to experience everything again, especially the bad. It's already happened. There is no need to fall into the same pit.

Lack of financial literacy is at the forefront of this problem. If the person had calculated correctly, he/she would have known that if he/she had sold those lands last year, he/she could have made much better use of that money. He cannot think that he could not sell them at X TL for 1 year and now he is planning to sell them at 2X TL.

We shouldn't be greedy. It is not right for us to hit the fallen. There should be compassion in his heart so that he can see that the word opportunity is not the word exorbitant. In these mistakes, we need to stick the needle in others and stick the nail in ourselves. Maybe some of you will be angry with me, but the "only culprit" of rising prices is not the wrong economy, but us.

Remember that we determine the free market. As a society, we always have an effort to meet the increasing price. Unless we know how to say "no, brother, I will not buy this service at this price", these increases and hikes will be inevitable. They will crack the whip on us easily.

Win-win trades will be replaced by lost-lost trades, as in this example. We don't need another enemy. We are our own enemies. We are getting worse together.

I am speaking on my own behalf. I will not make the purchase until I get it at the price I want. With the hope that the number of Don Quixotes will increase

Love