Successful Property Investing is all about the numbers and research

Where most people go wrong with investing in property is they make decisions based on emotion, rather than decisions based on the facts and numbers.

People tend to forget that property investing is about creating Wealth!

A recent research report from Commonwealth Bank shows the vast majority of property buyers including investors are swayed by emotions, and most probably don’t even realise it.

The primary considerations that will guide a search for a new home include price, location, size and ongoing costs.

But on top of that, there are various drivers that can be less obvious and based purely on what a would-be buyer is feeling, according to executive coach and clinical psychologist Dr Tim Sharp who conducted the study.

After probing the emotions of 1000 homebuyers and investors, he pinpointed the most common emotional characteristics that influence purchasing decisions.

A whopping 37 per cent of buyers would be swayed by “the vibe” of a place, with another 22 per cent likely to buy based on what they see as an “instant attraction” to the property, he says.

Furthermore, 21 per cent of buyers will be influenced by a sense that the home suits their personality.

Sharp believes many people are probably so overwhelmed by the buying process that they don’t even realise what’s influencing them.

“Many home buyers and investors start their journey to a new home full of excitement and optimism, but are gradually worn down by the sheer exhaustion of researching and inspecting different properties,” he says.

“More often than not, by the time it comes to signing on the dotted line, our heads are crammed with all sorts of emotions that ultimately end up influencing our decisions.”

His research also uncovered differences when it comes to the most influential characteristics between buyer groups.

For example, investors are more likely to be swayed by a property that makes them feel successful, while first homebuyers will get carried away with a house’s décor.

You need to take the emotion out of investing - It doesn’t matter whether you like the  property or not, as your not going to live there and make it your home. The decision to invest or purchase a property needs to be based on research, analysis, & returns and how it is going to work for your future or get you to your goal.

The most important aspect of property investing is that the numbers and research stack up!