Here are some of the common fears that can prevent us from jumping into property investment, and what we can do to eliminate them.
Fear of Paying too Much
A large number of properties lack exact price guides and go into auction to be sold. This makes buyers afraid that they are taking a stab in the dark in terms of prices. Being too cautious causes buyers to spend too much time researching – in a market that is constantly moving. So they’re left with 'analysis paralysis' when they fail to come to a decision.
To conquer this fear, perform a diligent market research. Look at price guides at face value, conduct your own sales research and get expert advice.
But beware, don't get bogged down by too much research or allow it to keep you from making a move when the right property does comes along.
Fear of Purchasing a Flawed Property
Expect plenty of uncertainties in the property market. Buyers can fear missing out on the right or perfect property.
There are many questions plaguing buyers such as whether it is smarter to purchase a smaller property nearer the CBD or choose something farther to buy a larger land and house; purchase a property to remodel or one that is already completed; and which suburbs are forecast to boom in the future. Soo much to consider!
What buyers should do is sit down and work out a plan for their house purchase. Ask yourself these questions: What phase in life am I right now? What are my personal/family needs for the short term? What things are important to us?
This means knowing your priorities because there are only a handful of people who can afford not to compromise on their property purchase.
Fear of participating in auctions or hiring selling agents
Most buyers find the process of purchasing a property overwhelming. These are people who are jumping into the property market for the first time and those who’ve had an awful experience with an auction, agent or purchase before.
Some people worry that they will be cheated in the process because they think selling agents are not very honest.
There are those who refuse to join auctions. It’s advisable to conduct some research on the common purchasing processes such as bidding at auction or negotiating for a private treaty sale.
As for selling agents, you can become more confident in dealing with them by familiarising yourself with local agents and seeing the way they operate and how they differ from others. Go to some of their other open homes to get a feel how they operate.
Fear of a property market crash
We all want to be able to predict the future using a crystal ball especially relating to the property market where a lot of buyers speculate about sudden increases or apprehension over a crash.
While it may be imperative for investors to make their purchase at the right time by observing the market, other buyers may not need to bother themselves over this too much. For example, if you are purchasing a house that you intended to live in for many years the condition of the market should be less of an issue compared to the magnitude of timing your buy when you are prepared financially and emotionally. It is recommended that you buy when you are ready.
Fear of missing the right property
The intangible fear of missing out, one that results in serious action in a lot of buyers, is the most emotional of all property fears.
A lot of buyers fear that the right property is coming and they will miss it if they make a purchase now.
When purchasing a property, you are purchasing at a given period in time. So buyers should not concern themselves with what they have missed already or what they may miss in the coming weeks. What you can do is ensure you have comprehensive knowledge to make an informed decision.
Feeling a little fear is all right but being overly scared can impede you. So what things do you fear? And how do you handle or resolve these fears?