Here’s 4 quick tips to help you make sure your emotions don’t get the better of you!
- Map out your numbers before starting
100% the best way to treat this as a business transaction is to have your investing goals written down before you even entertain the idea of browsing realestate.com.au
You need to have mapped out as a minimum the following figures; Price range, yield, capital growth, ROI (return on investment), total expenditure. If you aren’t sure about how to work out these figures than it might be worth doing some more research or getting professional help through the first few property purchases.
Once you have your figures it makes everything simple if it the property doesn’t stack up to your desired numbers than you move onto the next one.
- Be prepared to walk away
Sometimes the best investment purchases are the ones that you don’t buy. If you can’t get a property that works with the numbers or get terms that suit, then you need to be able to walk from the deal. If you become emotionally attached to a property, then that emotion could blindside you from a bad investment.
- Don’t rush your decisions
When we see something we like or we’ve been house hunting all weekend it’s easy to be worked up and wanting to make a quick decision. It’s best to take yourself away from that situation so you have time to re-assess the property and ensure that it still ticks all your boxes.
As a first time investor, negotiating a property is where the battle can be won or lost. Most of the time you are going up against agents who do this for a living and know the tricks to pray on newbie investors. They are well aware of the effect that emotions have on our ability to make rational decisions, so they’ll try to bully you into making quick emotional decisions. It’s best to be aware of what they are doing and take your time and think things through to make double sure you are buying on your terms
- Avoid buying at Auction
There’s not many situations where the emotions and energy run higher than at a property auction. It makes people do the craziest things. As an investor going to an investment isn’t advised because it can be too easy to get sucked into the vortex and over commit.
With all agents, auction seems to be the preferred method of sale, so if you are going to auction as a first time investor it may be worth getting a trusted friend (who knows what they are doing) or a professional to be your auction representative. You don’t want to be that investor that overpays at an auction and wakes up tomorrow with a buying hangover.
If you want help with knowing your numbers, then Divitis is launching an E-Course early next year educating investors on the path you need to take to help navigate your way through that first investment. Sign up here if you wish to join!
It can be a scary place, I remember I was with my first purchase, but if I can do it so can you. We’re here to help you push through the barriers and realise your dreams.