Common Errors Made By Buyers
Undoubtedly, emotions plays a huge part in the property markets’ expense growth.
Generally speaking, people who are purchasing a home for their families personal use are likely pay more for the property than an investor.
The simple reason is because their purchase is driven out of emotion. Becoming worried that they will miss out on the ‘perfect’ property, will cause some buyers to ignore rationality – and their budgets! This results in over capitalizing on a property because of fear driven decisions.
Alternatively, an emotional purchaser often buys a property in an inferior location out of fear that the properties in their preferred location are out of their reach. With the emotions and fear driven decisions in play, they are left with the notion that any property is a good property, so long as they are in the market. The market however, doesn’t work like this, and that second-choice property will always be a second-choice property.
Delaying a purchase in the hopes the market will swing
There will always be those who decide to wait for the market to swing in their favour. The issue that arises with this approach, is that investment quality properties in the city are unlikely to be a part of those dips in the market. Instead, the probability is they will continue to rise in cost because the demand is continually increasing. This in turn, leaves those who have held out for a swing in the market, further behind than when they begun.