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Getting On The Property Ladder

Maree Tassell explains how to deal with the emotional rollercoaster.

By: Maree Tassell

1 April 2018

So you’re ready to buy your first investment property? It should be simple really: get your finance approved, know what and where you want to buy, put in offers, do due diligence, purchase. Bang, done.

But for those of you who can remember buying your first few investment properties, and those of you who are currently going through the (e) nmotions, it is not so “cut and dried”…

While conventional wisdom says that it’s okay to be emotional when purchasing our own home, buying investment properties is meant to be a purely objectiveprocess. However, as a person who speaks to dozens of new purchasers every month, I can assure you that this is not usually the case.

The biggest hurdle a new purchaser comes up against is their own FEAR (False Evidence Appearing Real). The mind goes crazy as inexperience and the great unknown team up together. Then add to this the opinions of what I refer to as “the BBQ committee” and the best laid plans can turn to waste.

This is why it’s so common for newbie investors to “pike out” of purchasing just before they get to the finish gate.

So here’s my reframe on this very common scenario:

Fear is your friend. Its purpose is to keep you safe. The only problem is that your fear catastrophises your potential purchase by using your imagination to create problems that often don’t exist.

‘When I am talking to new investors who want to purchase I always have the ‘fear talk’ early on in the piece while they are still hyped up and excited’

The Fear Talk

When I am talking to new investors who want to purchase I always have the “fear talk” early on in the piece while they are still hyped up and excited. Usually my conversation goes something like this:

“Guess what’s going to happen as you get close to wanting to buy?”

“What?”

“You’re probably going to panic at the last minute and want to pull out.”

Having this conversation normalises what is a very natural reaction to a big decision. Being aware that they will likely experience these emotions enables them to not be sideswiped when it inevitably occurs. Understanding that fear is completely natural, and has a positive purpose, enables the purchaser to work with this emotion.

Because, conversely, everything you want is on the other side of fear.

This is where working with a property finder can be especially helpful. We understand what the real risks are when purchasing and it’s our job to mitigate them. This includes ensuring thorough due diligence is done. An experienced property finder should be an expert in the market they are operating in and know any additional risks (and benefits).

But What If?

“So, what if something goes wrong?” This is the golden question I often get asked when talking with nervous, new, potential buyers and fortunately I have the golden answer: “It will.”

Buying property IS a risky business. So, the way around this is adequate risk management. Partnering with a property finder enables you to learn what due diligence to undertake and helps to make the process more objective and much safer. Nothing beats experience and what can be a bit overwhelming for a new investor is “another day at the office” for us.

One of the most satisfying parts of being a property finder is having the privilege of working with clients to buy their first investment property, then seeing them gain confidence and know how to be able to do the same for themselves.

Something else to consider is learning to identify what fear is and listening to your intuition. This is something I will cover next month in my column.

iFindProperty is a licensed Investment Property Agency and our clients tell us we are great at helping investors find, analyze and buy great properties to build an awesome portfolio. Our team of Property Finders operate all over New Zealand and each are successful investors in their own markets. Successful investing starts with you and your property goals, so contact us today to talk about what you want to achieve and we will put a team in place to make it happen. Contact: maree@ifindproperty or 0274 866 146.

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