- September 10, 2014
- Posted by: admin
- Category: Budget, Buying at Auction, Enconomy, Finance News, Financial goals, First Home Buyer, House prices, Investment Property, Property Renovation, Rental Property, Self Managed Super Funds, Wealth
If you are one of the thousands of potential buyers beginning the journey to home ownership this spring, you may be wondering how to keep a level head during this notoriously stressful period.
While a property purchase should be a purely rational decision, the reality is this is not always the case. As a prospective home buyer, you are likely to go through a range of emotions during the purchasing process. You might want to find the ‘perfect home’ for your family, you may fall in love with a property on sight, or you could have a strong vision in your head of what your next home will look like.
There are endless ways your emotions can come into play when you are looking to buy a home. So, are you leaving your emotions at the door?
A research project was undertaken to examine the extent that emotions can influence home buyers.
Interestingly, the research found that while 75% of property buyers claim to be rational rather than emotional buyers, in reality, emotions have a significant influence over their final purchasing decision.
The most common emotional characteristics that influence home buyers are:
What’s also telling are the top three most influential emotional characteristics between different types of buyers:
How to keep your emotions in check
While you can’t always exclude emotions from the property purchasing process, it is important to always consider your original objectives and keep in mind your original budget.
Given that buying a property could be one of the biggest financial decisions you’ll ever make, it’s vital the final purchasing decision is ultimately based on a rational judgement – not your emotions.