Do you know that emotions can be the biggest deciding factor between a successful and unsuccessful property investment?
Buying with your heart instead of your head can result in you paying too much for a piece of real estate.
When property buyers go around looking at the real estate to buy, they easily fall for the things their eyes can see. And this creates an attachment towards a property they like. In 2013, results from the survey conducted by CBA showed that 44% of buyers paid more for a property for the sole reason that they “really liked it”.
So, is it possible to keep the emotions in check? Emotions can creep in at any time during the home buying process.
Before you start searching for “the one” property, have a clear goal of some non-negotiables in your mind – Price, location, number of rooms, floor plan, etc. Keeping these non-negotiables clear and stubbornly sticking to them can help you keep the emotions outside the house.
Do not fall prey to FOMO – Fear Of Missing out. Do not be in a hurry to buy a property because you think you need to get into the property market quickly. There is always going to be another opportunity. Do not end up buying it because you think this is the only one. It might make you end up paying more.
This will result in you falling prey to another mistake which is overpaying. If you are driven by sentiments in investment, you most likely will pay more than your budget. It is a good idea to engage a buyer’s agent who can represent you at the auction as well. This can prevent you from overbidding at auction and also to help you understand how much to offer to the vendors.
It can also be very easy to be overwhelmed when you in the market looking to buy a property. This potentially can be controlled with having a plan in place. Follow the numbers and facts, not the emotions. If you need to take time, do so.
A home loan pre-approval can help to keep emotions in check and not get carried away. Pre-approval means you clearly know how much you can borrow and hence can limit you in making an offer that you can afford.
Feel free to get in touch with us to arrange for a quick pre-approval. We can also provide you with some insights on a particular house that you are looking at and the suburb.
Do not let emotions decide what price to pay.