Why Investors Should Avoid Emotional Buying at All Costs

One of the main reasons for hiring a buyers agent from a firm such as Investors Edge when looking for an investment property in Perth is to help you avoid emotional buying. Even a small investor must treat his investment property like a business—that means buying rationally based on fact, as opposed to buying a property for emotional reasons.

Here are mistakes that emotional buyers make. They usually hurt your bottom line and sometimes cause a huge physical and emotional drain.

Becoming Emotionally Attached to a House you Can’t Afford

If you become emotionally attached to a house that costs more than you can afford, you will do everything you can to buy it. This can have severe negative effects on your budget. If you don’t buy it, your disappointment will affect how you perceive other investment properties.

Assuming that a Property is the “Only One” that is Right for Your Needs

If you find a property that you like, the odds are that there are many homes that are almost identical to the one you are looking at; there are probably many that were made by the same builder. Some looking around could save you thousands of dollars.

Buying Out of Desperation

The other side of emotional buying is being so desperate to buy an investment property that you will buy anything in the Perth market whether or not it is a good investment. It is wiser to have a set of parameters and stick to them.

Ignoring Problems

Sometimes a buyer who wants a house badly enough will ignore major problems and buy the house anyway. This is a recipe for fiscal disaster.

Buying a “Fixer-Upper”

Often, a buyer will fancy himself to be a “handyman,” when in reality he has minimal skills and often does more harm than good when trying to repair a home. The only way you should ever buy a fixer-upper is if you are a professional or you are hiring professionals to help you with renovating as a business model.

Yes: leave it to the professionals.