Steering clear from emotional buys

By the resi financial blog team, 09 September 2013

How to avoid emotional home purchases

Many first home buyers might agree that it can be very easy to fall in love with a house. You might find yourself one day in awe of the great features a specific property has to offer - the perfect kitchen, the latest appliances and fittings, and in the best location.

But one of the major drawbacks to falling head-over-heels for a home is that it can lead us into making an emotional buy.

Becoming emotionally tied to a property can have buyers willing to pay more for it, resulting in them potentially overspending or over-borrowing through a first home loan, and exceeding their property budgets.

So in order to steer clear from emotional home purchases, you may want to consider the following tips:

Budget

When you meet with a loan specialist, come up with a strict budget that you can stick to. It may even be wise to set your budgeted figure slightly lower than your limit so that you have some room to budge when it comes to the negotiation process.

Search parameters

Set your search parameters before beginning the hunt for your first home. Identify a list of features that the property must have - for example, three bedrooms, a garage, a fenced garden - and stick to looking at homes that possess those features.

At the same time, you may wish to direct your search to lower priced properties and work your way up if you cannot find something suitable.

Be sure

Once you believe you've found the perfect home, it may be a good idea to revisit it a few times to be sure that it is suitable for you. Don't forget to take a builder or inspector along with you so that you know you are getting a good deal.

To get help with your first home purchase and some of the best fixed interest rates around, contact a resi loan specialist today.

Categories: Home Loans