There’s no doubt that purchasing property in the current property market can be a fast paced, frantic affair with buyers scrambling over each other to get their dream home and prices rocketing over and above the market price. During what is often a stressful and intense period in your life, it can be hard to keep a level head when everyone around you appears to be losing theirs.
Here are four tips for staying sane and making the right property purchasing decisions.
Tip 1: Keep your emotions at bay
Every now and again, you might be in the situation where the moment you see a property, you feel you have to buy it and you’ll do whatever it takes. While it might seem difficult to reign in those rollercoaster emotions, you need to be as rational as you can be, taking into account other factors such as your purchase budget and original objectives with finding a new home, always trying to keep those emotions in check. This is one of the biggest financial decisions you will make so try not to do it based on emotion alone.
Tip 2: Understand your budget
Knowing your budget for the kind of home you can afford and the suburb you want to live in, will help you know when to walk away from a property if the price starts to move significantly northwards. Keep this budget to yourself, try to remain calm and in control and then negotiate your way to owning a prime piece of real estate based on what you can actually afford.
Tip 3: Know the market
Do your research and know the area well – how much houses are selling for, especially the type you are looking to purchase, plus the direction prices are headed in. Visit other house inspections and talk to agents and the locals to paint a more complete picture of the area, its nearby property market and its trends. Knowledge is power and knowing your stuff will ensure you appear savvy, confident, serious and ready to negotiate like a pro.
Tip 4: Have your finance in place and offer wisely
One way to keep a level head during property negotiations is to know that you’re in the best possible position to move forward on a purchase. In other words, you have pre-approved finance in place and have sorted out most of the groundwork to arranging your loan and getting into your new home. Once you have those approvals at the ready, you will have an idea of your maximum loan limits, and you have the peace of mind to make an offer that won’t waste their time or yours.
While most of us try to make calm and rational decisions in life, sometimes when it comes to buying property, these logical rules may go out the window. The reality is that we can be emotional buyers when trying to find that ‘perfect’ home for us or our loved ones. Follow these basic tips and you’ll be better placed to secure a dream home for a great price.
The information in this article is of a general nature and does not constitute as advice in relation to any investment or purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. You should read the relevant Terms and Conditions or Product Disclosure Statement and our Financial Services Guide available on our website before applying for any of our financial products and services. Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.
Published May 2016