One thing that puzzles me about Western society is the lack of regard for older people. Those who have been around for several decades have made - and often learned from - every conceivable mistake. Therefore, they can advise younger generations on how to succeed and prosper, if only people would listen.
Tuesday, October 25th 2005, 7:51AM
by The Landlord
Among the most powerful lessons that come with experience is that things do not always stay the same. Good times and bad times come and go. Interest rates, exchange rates, inflation, economic growth; they go up at some times and down at others.
Younger people, on the other hand, tend to focus on the moment and believe that current conditions will continue forever. As a result, they tend to make poor investors.
Take the current property frenzy, for example. Many buyers are acting as if low interest rates and high capital gains are guaranteed and do not appear to have plans in place to counter any adverse events. Those who have been through a property bust or two tend to be more cautious.
US investment guru Richard Russell is in his early 80s and has been studying the markets for more than 50 years. When he talks, it pays investors to listen. This is what he says about investing in apartments, referred to in the US as 'condos'.
"When you buy a condo what are you buying? Well, instead of renting an apartment, you now own an apartment, and you pay the financing charge to the bank or mortgage company, and you pay the upkeep to the real estate company. And above all, you hope the price of your condo goes up.
