Let’s face it – as women we pretty much make everything emotional (in one way or another!). We are constantly riding a rollercoaster of emotions from the high highs, to the low lows and everything in between. Almost every decision we make is based on our emotions and how we feel about a certain topic.
At some point in time we’ve all cried at a TV commercial … and we almost always make something bigger than it actually is because we allow our emotions to take over. I love that women show emotion. We’re human .. we have a heart and we FEEL everything.
Unfortunately when it comes to property investing, there is no room for emotions. It’s a numbers game and you need to think with your head, not your heart. Treat it like you would any other business and consider every decision a business transaction. If you get caught up in the emotion of making decisions based on how you feel, then it’s likely to cost you time and money. Just because you ‘really like’ how a property looks, does not make it a good financial investment. And if a property has the kitchen that you’ve always dreamed of, it doesn’t make it the ideal property for you to buy.
Look at the numbers on paper. That’s it. If the numbers stack up, then it’s a good deal. If the numbers aren’t working in your favour, walk away. Cut and dry. Black and white. No if’s or but’s.
Would it surprise you if I told you that every property I have purchased was done so without ever physically seeing the property in person? It’s called sight-unseen. I didn’t walk a single step in any of the properties before they were purchased because I didn’t need to. I looked at the numbers and considered how they would benefit me and my portfolio. When the numbers looked good, I went ahead and purchased the property. I was never emotional about any deal because I wasn’t personally invested in it. I was never going to live there so it didn’t matter what colour the carpet was or how ugly the bathroom looked – I didn’t have to shower there every day! Detaching from the personal connection to a property is so important because it will always allow you to make a decision with clarity and confidence.
How can you detach from the emotion?
1. Remember that you are never going to live in this house
You’re buying an investment property, not your own home. Look at what you see with a completely different set of eyes.
2. Treat the deal as if it were a business transaction
The property is the “product”, the rental return is your “income”, all of the costs are your “expenses”, and any extra money you earn from it is your “profit”.
3. Look at the facts and figures
Get out of your heart space and get into your head space. Look at the numbers on the paper and ignore any personal ‘feelings’ that you have about the property.
4. Ask the pro’s
If you feel that you are too emotionally attached to the deal, ask a professional for their opinion. And then ask another professional for their opinion too! If the advice is based on the facts and differs to your thoughts and feelings, chances are you are too personally invested in it. Go back to the beginning and look at it from a business perspective. And if you’re just too close to the deal and can’t make a decision at all, ask the pro’s to make that decision for you.
Property investing is about bricks and mortar, roofs and walls (and sometimes weatherboards and shingles!). You are in the business of property investing to make money. And when there is serious money involved, it simply can’t be about your feelings and emotions.
Detach from it and make the decision that business is business, money is money and there is no room for anything else.