Would ever swap a productive asset for an unproductive one?

[giofranchi]

And seeing as you are basically guessing on price direction rather than building a valuation off cash flow, this seems more like a speculative venture.

 

But that is exactly the reason why I am so unsure! And as a consequence also the reason why I brought up the subject. And sincerely this post of yours is much more helpful to me than the previous one. Therefore, I thank you. :)

 

Gio

[SharperDingaan]

Not to be a bummer, but we all post here to also hear the opposing view ..

 

I understand that you/your family already own property in this area, this purchase will materially affect your ongoing liquidity, & there is some possibility that it may not always cover its carry cost.

 

A 2nd property in the area is not going to add much to your enjoyment, will significantly reduce your options, & will potentially expose you to a negative carry that you will have to cover from other sources. Undertaking this purchase will change your investing approach, and were it a stock you would walk away - without hesitation.

 

Does not mean you don't purchase, you just do it with partners and rights of first refusal. A smaller chunk that is manageable, and which does not end up altering your investing approach. More work, but much less risk as well.

 

We all regret the one that got away, stock or property. That's just life.

 

SD

 

[cobafdek]

Very romantic… I think I could keep a girl more than just a few months over there… even talking about stocks all the time! ;D ;D

 

Such would be the rare valuable woman!  And more than justify the cost of the property!  Especially if she possesses that fabled mysterious quality attributed to their gender:  the woman's intuition for sizing up people.  This intangible would add to your over-developed left-brain rational investment process, and assist you in evaluating those entrepreneur-owner-manager's you seek.

 

Upside:  she might have steered you away from a Richard Brindle before he jumps your ship prematurely.

 

Downside:  she might sense grave forebodings in the bling and ritzy excess of Mr. BiglariSardar, and you would be nagged for eternity until you sell BH.

 

This female optionality with the Liguria investment resembles a DCF calculation:  change the assumptions, and the valuation is in a completely different universe.

[giofranchi]

A 2nd property in the area is not going to add much to your enjoyment

 

Stupid, I am! But not a complete idiot! ;)

Of course, if I go forward with the purchase, I plan to swap the old property for the new one, covering at least a part of its cost.

 

Gio

[giofranchi]

Downside:  she might sense grave forebodings in the bling and ritzy excess of Mr. BiglariSardar, and you would be nagged for eternity until you sell BH.

 

Mmm... That would spoil the magnificent sunrise and all the romantic feelings…  ;D ;D ;D

 

Cheers,

 

Gio

[oddballstocks]

How can we help you with that if you don't even post pictures? :)

 

It is wonderful! With a gorgeous terrace right in front of the sea, from which I have seen many beautiful sunrises! Very romantic… I think I could keep a girl more than just a few months over there… even talking about stocks all the time! ;D ;D

 

Gio

 

Spent a little time looking at images from Google for the area.  I haven't seen a bad picture yet.  If you have pictures of the place that'd be awesome to post.

[giofranchi]

If you have pictures of the place that'd be awesome to post.

 

I surely must have some, but don’t know where… I will have to look for them and, if I find some, I will post gladly! :)

 

Gio