Well you should... because the two principals are quite different and can make a big difference to your chances of achieving financial independence or freedom.
Warren Buffett is an American investor, industrialist, and philanthropist and is widely regarded as one of the most successful investors in the world.
Price vs. value
The fact of the matter, whether it is shares or property, is that there is a significant difference between price and value.
But if we look at property specifically, you can clearly see how value differs from the price of a property when one property grows in value at a far greater rate than another.
Consider this: the majority of these properties will be average capital growth performers; some will be poor performers; and a small percentage will actually out-perform the market. That’s how averages work!
Quite simply, that’s where the difference between price and value truly lies.
But, in my experience, far too many people get bogged down on the purchase price and forget the bigger picture, which is how that property will perform in the years ahead.
George Raptis is Director of Metropole Property Strategists in Sydney. He shares his 27 years of experience in the property industry as a licensed estate agent and active property investor to help create wealth for his clients.
He is a regular commentator for Michael Yardney's Property Update.
Read more Expert Advice from George here!
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.