Some find the process of buying the perfect property laborious and somewhat tedious, while others find the process exciting and a total challenge.
One thing is certain: no matter what your feelings toward the outcome, finding the perfect property requires time and effort and rushing this process will ultimately mean that you can end up purchasing a poorly performing property.
Or worse, you could end up with a disastrous ‘money-pit’ on your hands.
Rushing into any purchase is generally due to placing pressure on ourselves because of impending market conditions or our own financial position, when we are driven by emotion rather than a rational thought process.
Whether it is an addition to your portfolio, or the ultimate family ‘dream home’, placing strict time deadlines on the process is a dangerous and stressful way to purchase property.
Taking the time needed can sometimes be difficult as there are a number of situations that drive us to make a quick decision.
Here are four circumstances that can place pressure on your buying decision:
- The market is exploding and prices are rising every day
It is difficult not to panic when you are watching prices rise literally around you, but you need to be mindful that rushing your purchase can be fraught with danger.
There are essential processes such as, research on the suburb and history of the area, carefully checking comparable sales and of course, the time needed to enter into a price negotiation, which all takes time.
Rushing, or skipping these altogether may ultimately end up costing you far more than the week or so it would have taken to go through these crucial steps.
- Your life situation is about to change
There are so many circumstances that cause financial strain such as the impending arrival of a baby, a divorce, a relocation to a new city, or even a change in your employment status.
In these situations, it is sensible to take the time to understand your future borrowing power and seek advice from a finance strategist to avoid entering into a financial situation that is unserviceable.
- Time is running out with your current lease
Taking the leap from the renting pool to owning your own home is the ‘great Australian dream’.
Unfortunately, when the end of a lease is looming, there is unwarranted pressure to make a quick decision rather than risk being ‘homeless’ within weeks, or signing a new expensive leasing contract.
In this situation, it is often healthier to find short-term accommodation and take more time to find the perfect buy.
The cost of short-term accommodation will be less than the costly buying fees involved in buying a property that isn’t right.
- There are changes to Government incentives
Government incentives are designed to stimulate the real estate industry, and are often reviewed when market forces dictate the need to influence a fluctuating market.
Often impending changes to a grant – such as the First Home Buyer’s Grant – forces buyers into think they must rush to take advantage of the entitlement.
The risk here is that you could actually spend more money in the long run.
An example is, if you are buying at the peak of a market to get the $7000 grant, you may spend more than if you had just waited a few months, when competition from other first homebuyers has all but disappeared.
Making a swift decision may lead to a poor outcome, however there is also the flip side where it can be equally detrimental to wait far too long – and the perfect property slips through your fingers.
It is important not let too much time lapse or you might make the mistake of:
- Spending so long in decision-making that you miss out on properties,
- Having so many options in the pipeline that you become completely confused and lose track of your original strategy,
- Not being ready and becoming fearful of actually signing on the dotted line, or
- Your thoughts are conflicted and you don’t trust your decisions so simply just ‘keep looking’.
Uncovering the perfect investment should start with a solid long-term strategy and understanding precisely what kind of property you need to buy, and what growth rate and return you’re looking for.
Once you clearly understand your financial standing, the suburbs you are targeting and the property type you are seeking, you are in the best position to maximise your negotiation.
SO WHAT WILL BE YOUR NEXT STEP?
Are you going to take advantage of the property markets in 2017 or are you going to get caught by the traps ahead?
If so and you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
When you attend our offices you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.
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