You buy shoes on an impulse, but what about your home?
It’s a calm, deliberate decision, right?
Imagine for me, if you will, your dream home, on the perfect street. It’s right near all your favourite cafes, features a master room ensuite and a nice garden. But nothing too big or too hard to take care of, because you plan to spend your weekend in the dog park across the road. Dream home + puppies = perfection, right? Only thing is, the home is about $200k out of your price range.
So what do you do?
Settle for second best at a cheaper price, or accept that you’ll be paying off a mortgage in Sydney for the next 60 years?
Do you think with your heart, or think with your head when buying your first home?
Why buying your first home is an emotional decision
People often overpay for their dream homes because they’re emotion lead. This can often lead to otherwise level-headed first homebuyers in Sydney overpaying, and then experiencing high levels of mortgage stress.
Would it be better to think logically, mathematically and unemotionally when investing in your future?
Well, maybe. I’ve written about this before over here.
But here’s the thing about life: it’s not a spreadsheet. Nothing is mathematically certain – not even the numbers we give you.
When making such a huge financial decision, your emotions are bound to come into play. You’re thinking of your future and your family’s future, and setting up a foundation for you all to grow.
You’re going to be thinking with your emotions, but the key is to not let them rule you. While it’s important to feel an emotional bond with the place you live in – it can inspire how you’ll look after your house and even participate in your local community – abandoning your inner cynic isn’t wise.
Aesthetics of a home
Everything that goes into the look and feel of your home has a profound affect on your brain. All the smells, colours and sounds you can hear will influence how you feel about a home, and how much you’re willing to buy it for.
In fact, according to many different studies, 90% of all purchasing decisions are made subconsciously on a deeper, emotional level. These emotions carry over from previous events in our life, influencing how we behave and purchase later in life.
Perhaps the colour blue painted throughout your dream home reminds you of your childhood bedroom? Or the lounge room reminds you of your first share house?
What to do: be aware of the fact that pretty doesn’t always equal practical. That living room is already the perfect shade of light peach, but is it well-ventilated? Is there enough sunlight? Is it noise proof? Be conscious of your emotions, but don’t let a Pinterest board dictate your purchase decisions.
Just as different colours, smells and sounds in a home appeal to particular sorts of people, different neighbourhoods will attract a particular type of person. Are you looking to live close to the city, so all the best restaurants are a stone’s throw from your doorstep? Maybe living by the beach in Bondi is more your thing. Whichever you choose, your neighbourhood is going to stir certain emotions within you. And when it comes to those areas associated with status, you’re going to be thinking with your Fear of Missing Out. Will you let it dictate your future? Or will you think with your head?
What to do: You might find the perfect area for you at this point in your life. But what about in ten years time? Will living near all the best bars and pubs be what you want in five years time? Think about the long term, and how your neighbourhood needs to support you as your values change.
There’s no doubt that we live in an age where we’re bombarded by choice. We don’t just settle for the restaurant down the road – we vet a whole city of restaurants based on a library of reviews. We even shop around for partners online, such is the extent of our choice.
So it makes sense that when we find a home in Sydney that we like, we might feel that we need to see at least 50 more houses before we’re ready to make up our mind. What if there’s something better out there that we haven’t seen yet?
What to do: I see this happen all the time with first homebuyers in Sydney – they wait around trying to find that perfect home, and then find themselves regretting it 9 months down the track.
This isn’t me telling you to buy the first home you see, or even the third. But be mindful that in this city, good houses sell like avocado on toast. That is, quickly, and usually for a hefty sum. If you’re going to wait around, give yourself an end-date that you need to have made a decision by.
Let’s face it: buying a home is a highly emotional process. Most people will tell you to can your feelings and focus on the numbers. But is it better to ignore your human side in favour of a solid financial picture? Well, kind of. You can use these emotions to guide your decision making process, but only if you know how to make a conscious decision.
That’s why you need someone in your corner who can help you crunch the numbers, and find the best mortgage for you.
Find genuine, calculated and honest advice from the team at Mortgage Guy. Reach out – we’re here to help!