There is a famous analogy of the elephant and the rider. The rider represents logic, the elephant the emotions. Most of the time the rider is in control and steers the elephant successfully through all obstacles. However, should the elephant – the emotions – take control, the rider has little hope in stopping the rampaging beast. For most of us, this is recognizable. We operate mainly on our logic but when the emotions kick in, logic can be overridden or completely disappear.
When you approach the purchase of property – for the majority of us the biggest purchase we will make in our lives – we want the rider in control of the elephant. When you are buying an investment property this an even more important consideration.
Remember, an investment property is not necessarily where you or your family will ever live. Your decision to buy should be based on the intrinsic value of the property – you do not want to overpay as this could compromise the eventual profitability of the investment. Likewise, in looking at investment property, you need to consider the features that are attractive to a generation of renters – not the features you like the best. A big garden may be wonderful for you, but put off a renter who does not want to spend time tending it.
Of course, there are people available to help with this decision making process. Accrue Real Estate have years of experience working in the Melbourne property market. They offer a service to clients that helps them make decisions based on research and market trends.