The Role of Emotions in the Property Investment Process
A recent study conducted by St. George Bank indicates that emotions play a major role when it comes to investing in property. The emotional attachment has been reported to affect the private as well as work life of investors. In other words, investors reported to suffer from sleep problems, social isolations, and concentration problems at work. To avoid these negative side effects, Ross Miller, general manager for St.George Retail Banking, suggests that investors should seek out property investment experts who provide guidance along the process and ensure the right investment decisions are made.
Lucas Rogers Comment on Emotions in the Property Investment Process
The results of St. George Bank’s study are not surprising for me. People invest in property using their emotions before they have even researched or looked at the evidence. They tell me that they don’t want to invest in a certain location. When asked why, they just say because they don’t like that area and they would not live there. I also regularly hear comments like, “I can’t invest in that property because it doesn’t have stone bench-tops in the kitchen and bathrooms” and according to their expert knowledge “everyone wants stone bench-tops these days”. Yet they have failed to recognise that the property is in the lower bracket so the cost of stone bench-tops is not going to be returned in either capital growth or rental yield.
You must judge a property only by numbers and facts and not by emotions. Emotions will just bring you unstuck. Therefore, I agree with Ross Miller that we, property investment experts, can not only help our clients to build wealth by making the right decisions but also to focus on other things in their life and enjoy a good night sleep.