If you're currently suffering from 'analysis paralysis' you need to get your act together and make your property dreams a reality.
Blogger: Sarah Wells,senior finance adviser, Rate Detective Finance
Commitment is the new black.
This is the step that separates the doers from the rest of the pack. In my previous blogs we spoke about how to design your dream and keep to task. Then identify and select the team that are going to support you in making decisions and taking actions to launch yourself safely and wisely into the property market.
Now is the time to get the team out on ground in the game to make it happen. I find this is where people fail to launch, they get so caught up in getting it right and are scared of making the wrong decision that they end up doing nothing. Sometimes doing nothing is far worse than taking an educated, thought out action and not getting it 100% right, the first time.
When in life can we with 100% certainty say we get it right, 100% of the time? If we look back over decisions in our life at pivotal points, was it luck? Fate? Or the fact that we made the best decision we could at the time with the tools and information we had available? My personal and professional opinion is most often than not it is a case of the latter.
So you might be thinking, but this is a big risk. So is finding the perfect partner, deciding to start a family or going out on your own in a business venture. It takes courage to take that first step. For many of you reading my blog, this may not apply as you already own property or are ready to take the next step and sign on the dotted line. What may be the case is that you have someone you know who has been talking about ‘getting into market’ and they fall into the ‘paralysis by analysis’ category or just can’t seem to get going.
In the hopes of getting those of you who identify to the next step and go from browsing the real estate sites online late at night, in between shopping and catching up on the news of the day, to making an offer and committing yourself to a purchase.
1. Get your finance approved
That is, a conditional approval subject to valuation, not just a pre-approval from an internet site or call centres. What I am saying is, you have met with your broker, made an application, provided all the relevant documents and hold an approval. This is the biggest advantage you will have when committing to buy and a sign of a first step in the right direction.
2. Live as though you have the debt now
I like to call this the try before you buy approach, I use this with my first home buyers and those wanting to upgrade to a bigger home. Just because you can on paper afford a loan you may be scared of the commitment. So I say, take the fear factor out by doing it anyway, just without actually doing it. Do your budget and worse case scenarios such as no rent for three months of the year (average this out) and other real or imagined fears and factor them in. If you can do it for 3 months and you find you are not so frightened at the thought then you are ready to take the plunge.
3. Stick to the plan within reason
If your plan is to buy a certain property in a certain area at a particular price and you just can’t find one, don’t then decide to wait until the sky falls in and market bottoms out. You might just have missed the boat. Stop and re assess, look for ripple suburbs and other options. You might be waiting for the impossible to occur.
4. Take a safe bet
For your first purchase, buy something that will hold its value and is not exposed to too much volatility. While you might not make a killing, you are not going to lose the house either. This is a safe and measured first step.
5. Look at what procrastination has cost you so far
We live in a world of free information, the ability to research property and finance has never been so easy. Think back to when you first thought about buying and when you had the deposit saved. Name a suburb that you would have considered buying in and then look at the data on that suburb between now and then. That will give you a little get up and go. You never know you may just be a natural property hunter, property values are driven by people’s desire or drive to live in certain locations. If you had a hunch about a certain area chances are so do others. Take a moment and think about what suburbs and locations you have a gut feeling about now and get doing some research.
6. Ask for help
Talk to your team and tell them you are afraid to take the next step, it is their role to help you. Remember it is ok to be afraid, but it’s not ok to do nothing.
7. Do something
If the only thing you take from this blog is to pick up the phone and ring your broker and say ‘what do you need from me to get my loan approved’ then I’ve made a difference. Most of my job is getting my client’s dreams and desires to happen, the rest is making the magic finance equation make sense and ensure that they are well protected and structured to weather the ups and downs of the market.
Remember, property ownership and investment is a journey. There will be some wins and some losses, if you have a plan, good people around you and have the courage to commit and enjoy the ride. Then you are well ahead of the pack.
About the Blogger
Sarah is the Senior Finance Adviser at Rate Detective Finance, one of the top performing brokerages in Australia, providing consumers with information and support with home loans, personal loans, commercial loans, refinancing and insurance.
Sarah has worked in the Finance Industry for over 11 years and during this time built a strong reputation as an accomplished financial services, banking and debt structuring specialist. Sarah has extensive experience as a Buyer’s Advocate and Finance Broker in Sydney and a recipient of a series of service and business excellence awards.
Successfully assisting thousands of Australians with loan enquiries in excess of more than $1 billion, Sarah works alongside a highly qualified and dedicated team who are equipped to deal with all aspects and complexities associated with the mortgage market.