Our recent posts have looked at the way in which our emotions and biases can impact our decision making in property investment. As humans we are emotional and we do have inbuilt biases but that doesn’t mean you always have to give in to them; especially once you are aware that they may impact. Below are some ways that may assist you in overcoming any biases you might have.
The first step, as mentioned is being aware that these biases exist and reflecting on those that may affect your own decision making. Improving your ability to recognize these biases in yourself can be as simple by observing the way these biases impact others.
When trying to make an important decision, it is often useful to play ‘devil’s advocate’. If you believe you have found the property you want to buy, list the reasons why you shouldn’t buy that property. Find the aspects and features that might challenge the reasons you have for purchasing a particular property. Doing this successfully will involve asking critical questions that will either support or go against your reasoning. Through this questioning you are helping to keep your decisions free of bias.
Time is another key factor in overcoming bias. Making a logical decision is always easier if you give yourself time to really think over and consider your options. Do your best not to rush into making decisions about your property investment.
Finally, always seek the opinion of others. Some of these will carry their own biases but the more information you gather, the better your decision making will be as you will be able to consider many factors. Also seek out those who are experts in the field, such as real estate agents. These views will be impartial with regard to your personal situation but provide specific information regarding the property market.
Accrue Real Estate have spent many years working in the Melbourne property market. They provide clients with research and reports that assist them to make unbiased decisions. If you are looking to meet your financial goals through property purchase, then Accrue Real estate can help.