You’ve heard it a million different times on a million different blogs; buying a home is life-changing, life-defining, pivotal, basically every single daunting adjective you can think of. During the process itself, you’re constantly (and rightfully) encouraged to explore all your options, never make rash decisions, and run everything by trusted professionals.
However, we’re so hung up on following this advice that many of us swing to the other extreme. We’ll be forever picking through every bit of information on every listing, finding fault with small, easily manageable issues, and simply thinking it’s too good to be true when everything does fall into place! This is known in Real Estate circles as “Analysis Paralysis”.
Another line you may have heard us parroting, which remains true, is that we’re still in a buyers’ market. There’ll rarely be a better time than now to grab a bargain, and as a result, many buyers are playing limbo with their house hunting; basically, daring themselves to see how low they can go. This may not have the most immediate effects in the short term, as ABS statistics have shown an 8 per cent increase in finance commitments from first home buyers, but this particular combination that’s created the buyer-ideal situation we’re in, is bound to fall apart sooner or later.
As much as we would all like to see ourselves as sharp, hotshot investors, trying too hard to time the market can lead to significant losses related to repeated buying and selling, such as stamp duty and capital gains tax. To put it simply, buyers shouldn’t be afraid to spend a little more for something that they know for sure is desirable and a safer bet, as there’s a much larger chance they’ll see their return on investment in the future if they go for the better property anyway.
Analysis Paralysis while potentially harmful, is ironically a symptom of something good; that being the buyers’ thirst for knowledge and desire to be educated when it comes to the property market. As happy as we are to play teacher to those who may not know as much about Real Estate, we also love dealing with those who have done their homework. We’d just hate to see enthusiasm turn into anxiety!