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Buying Expensive Condo Right Away May Not be the Best Decision for the New Entrants

Condo

What is your idea of having luxurious items in your house and living a grand life? It is possibly the dream of most of my readers, but only a handful of them can enjoy such a luxurious life. It is all about having the money and resources to buy the products or real estate that is priced at millions of dollars. When we talk about luxurious items, the jewelry is amongst the top as women, as well as men, are fascinated by expensive diamond rings and gold jewelry.

When in May 2020, De Beers announced that they are going to use lab-made diamonds instead of mined ones, they created a stir in the market. One carat of synthetic diamond cost around $4800 at that time, but within a few months, that price crashed down to just $800. De Beers certainly made sure that they can command the price they have in mind to send to a much larger audience than their current and loyal customers.

Pandora, perhaps considered the most luxurious jewelry brand in the world, has also followed suit. Pandora announced that it will not be using mined diamonds in early May and will use lab-made diamonds. And in the coming few months, they will completely switch to lab-made diamonds. This is going to be a new trend in the market as most of the other jewelry companies will follow the market leaders. 

The same is true for real estate and other sectors where everything is perceived as how the rich and famous are doing it. If there are certain deals within a few months crossing the hundred million thresholds, we see such deals coming in regularly. But once investors are reluctant to invest that much money in real estate, we have to wait several months or even years for a big deal. 

Future Investments in the Real Estate

Investment in real estate, especially in the luxury segment like penthouses and huge mansions, has been relatively slow for the last several months. But the pace has picked up as the world is trying to foresee things after the COVID-19 pandemic. The investment in the real estate sector is always prone to risk, but this is true for virtually every other investment too. Think about stocks, and the forex market in these are also based on positive news and negative news and the stock shares tumbling down.

If you are also looking to invest in real estate in a big city like Toronto, you need to start modestly. Even if you have much amount you shell out on a 2-million-dollar penthouse, you need to make cautious moves so that you can firmly set your feet in the market. A simple three-bedroom condo can be a good move. After that, you can go for expensive condos and penthouses as you will have a better grip on how the market moves and which purchase will be beneficial for you. 

We have seen in the past that big real estate investment may not be beneficial for the buyer in the long run. This can occur due to several factors prevalent in the market, but dire economic situations, just like the current one, can be one factor. When a penthouse near Miami, Florida, was bought for over 20 million dollars last year, it certainly raised some eyebrows, and now the owner must be thinking about selling it, even for a meagre profit. 

That is why I have offered my honest advice to anyone looking to invest in real estate. It is only a matter of time before you will get accustomed to the current scenario and what can happen in the future so that you can make sound and decisions.

Over to you

The topic is interesting enough that I think that some of my readers would be interested in adding their experience. So do not be shy and speak up. If you think that you can add something valuable to this blog or want to ask a question, you are more than welcome. 

For any feedback, please use the comments section below.

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