Don’t blow the budget on your next property purchase

You know how it goes. You see that dream property you’ve just got to have, and then next minute, the budget is in smithereens. Well, at least that’s what happens to almost a quarter of home buyers. Here’s how to keep a lid on your emotions and your budget.

Purchasing property is perhaps the most emotional transaction you’ll ever make.

Come crunch time you’re there imagining your kids mucking around in the background while you’re turning snags on the back deck with friends over a few drinks.

Hardly a time to be making the biggest purchase of your life, as many people seem to discover.

A quick look at the stats

In fact, for a whopping 22% of home buyers the emotions run way too hot and they end up well exceeding their spending limit, according to a new survey by ME bank, which is owned by 29 industry super funds.

Of the people who go over budget:

– Almost half exceed it by $30,000 or more.

– Three in ten exceeded their budget by $50,000 or more.

– One in ten exceed their budget by $150,000 or more.

Some of the more common reasons for exceeding the limit include falling in love with the property (52%), impatience (20%), and getting caught up in a bidding war (12%).

Kerb your enthusiasm

Here’s perhaps the most worrying stat from the survey, however: For people who go over budget, two out of every three admitted that they suffered some kind of negative financial or emotional consequence as a result.

With that in mind, here are some tips to keep in mind when you’re on the hunt for your dream home:

– Patience is key. Even if you do miss out on what you consider to be your dream home, another one will come along. And it might even be better.

– Keep your emotions neutral. Before acting hastily, always call someone who can be an objective voice of reason.

– Compromise with yourself. If everything you like seems to be just outside your budget, compromise a little on something. That could be the location, the size of the property, or even its style.

We’ve got your back

We pride ourselves on being a friendly ear with your best interests at heart.

So if in the heat of the moment you ever need to speak to someone who can help put your emotions to the side for a second, then don’t hesitate to call.

We’d be more than happy to provide you with fair-minded advice that will help you stay on track with all your financial goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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