How to Make Better Decision When Investing in Real Estate?
Have you recently sold your house and bought a new one? or Are you looking to buy a new property?
With the current economic situation, it certainly looks like a potential bargain opportunity for house hunters. That goes the same for me too!
Aside from Stock Market, my second passion of investing is Real Estate or in Asia, we called it Properties in general.
After managing 6 properties for the last 4 years, I discovered the No. 1 mistake made by most buyers and sellers, which cost investors or homeowners tens of thousands of dollars, and it is perpetuated by the industry of real estate agents.
Agents earn commission when you buy and sell a property so they want you to do it ASAP.
Not their fault, just how the system is designed. Structure drives behaviour.
What is the No. 1 mistake?
People often buy and sell properties in a rush. Literally, within days of viewing a place, people rushed into buying a new place and selling their current place.
The high pressure cooker environment at the new launch showroom is such an effective marketing set up that million-dollar houses are sold EVEN before the buyer has ever seen or touch the place. Talk about FOMO in investing.
My observation is that people went into a showroom in the morning and by lunch, DEAL! They would have bought a place. Talk about FOMO in investing.
Of course they might have already done their “homework” before going to the showroom. But it is still a very rushed decision in my view.
When it comes to buying other items such as laptops or tv, we will generally read review websites, ask around, and check out different models for weeks or even months before purchase.
And that is likely only a few thousand dollars.
Yet for a million-dollar property, people rush into decision within DAYS or even HOURS at times.
What Should You Do?
Over the years, I have developed a system to ensure that I don’t rush into decisions and giving me a higher chance of making better investment decisions.
I detailed my process of selling my current place and buying a new one in a video below.
I personally went through this process recently so I want to share it with you.
I do what I preach.
If you are looking to buy a new house or property, please watch this before you jump into a rushed decision. It will save you tens of thousands of dollar!
