We’ve all guilty of letting our emotions get the best of us. If you’re looking at property listings or attending inspections, there’s a good chance you’ve felt emotionally-drawn to a house. Maybe you’re a sucker for a quiet cul-de-sac, an open plan living space, or a luxurious swimming pool.
A survey conducted by CBA found that 44% of Australians paid more for a house because they liked it.
Gut-instinct, good vibes, falling head-over-heels for a house – call it whatever you like, emotions can really get in the way of making smart property investment purchases.
Take off your owner-occupier hat
Too many investors find it hard to separate their financial objectives with wanting to buy their dream home. The reality is very few investors will ever move into their investment property. So it’s important that you leave your emotions behind so that you can make the best financial decision.
You need to put your own tastes and preferences aside and think about what your potential tenants value. Maybe you love the idea of living a short walk from a pub, but is that what your demographic values? Maybe you hate mowing the lawn, but does your target market want a yard?
Fear of missing out
With record-breaking property market growth in the past year, it’s no surprise that a lot of first time buyers are scared they are going to miss out. This can lead to rushing into decisions or over paying.
Don’t panic. If you have the right strategy in place then you will find the right place. It’s better to wait than to pay an over-inflated price.
Don’t hesitate forever
The opposite problem to property FOMO is not being able to pull the trigger. Sometimes it’s fear that drives this, other times it’s a hope that something better will come along. Indecision can be paralysing and lead to a lot of wasted time and effort.
While it’s always wise to be prudent and take your time, it’s also important to recognise when you’re kissing goodbye to great opportunities out of a hesitance to commit.
Get a second opinion
It’s always a good idea to get some expert advice. One of the most common questions we hear is “What is a fair price for this property?”. It’s the golden question and one that investors should take very seriously. If you can get a fair price, or ideally a below-market price, then you’ll be well on your way to securing capital growth on a property quicker.
That’s why we’ve developed a system for determining a fair price on properties. Simply schedule a free discovery session and we can help you discover the true value of any property that you are interested in. We help investors take the emotion out of the equation to get the best results.