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Becoming a property investor is one of the best decisions you’ll ever make. It can deliver huge fiscal benefits if you apply your well-structured plan and adopt the right fundamentals. It can deliver enormous gratification and mental well-being too. There’s nothing quite like staying the course and reaching a point where you’re certain of your future financial security. But all too often there’s another facet of investing that, if not fully recognised and managed, can lead to poor decisions and lousy risk-taking. That’s the element of emotion. While on the face of it emotions may not seem too important, they can end up costing you real dollars. Here are three instances where a lack of emotional control will hit your hip pocket.


Property markets are driven by both confidence and fear. When buyers feel good about the future of prices, rental incomes and borrowing capacities, they’re happy to pay extra to secure an asset that will meet their needs. The reverse is also true. Uncertainty and fear will cause buyers to hold back. In fact, fear has spawned a whole range of price movers in the Australian property market. For example, during the height of the boom in 2021, the Fear Of Missing Out (FOMO) saw buyers paying extraordinary prices for properties. New price records were being set each week. It was difficult to keep up with the gains. But now we are in a slowing market and the Fear Of Paying Too Much (FOPTM) is causing buyers to hold off and not act.

Ironically, in both these instances, reacting to fear costs purchasers money. FOMO often drives investors to pay too much for a property. They use their fear emotion to justify outlaying tens of thousands over market value for a home. Similarly, FOPTM now causes investors to miss out on excellent purchasing prospects. These properties will deliver terrific long-term upsides, however, purchasers are ignoring the potential and saying “no” because they’re convinced the price will drop further. Unfortunately, their window of opportunity is closing, and I suspect many will soon look back in regret for not acting when they could.


This is one of the most basic mistakes made by investors. It’s when they buy into a location and/or property type that appeals to them emotionally, not necessarily one that will suit the needs of their portfolio or their long-term investment plans. If you’ve ever looked at an investment and felt drawn to it because you thought, “I could happily live here,” then I urge you to stop and assess your motivation. You are not purchasing this for your own contentment.

Property investment is a business that should be based on hard data. Know the outlays and returns and how they impact your strategy and ultimate goals. Don’t become enamoured with your investment options. Instead, lean on your advisors to make sure you are selecting the right asset for you.


This is a big one. Investors should be motivated by the concept of a healthy wealth-building process, but greed can send you broke. As investors, we see the enormous short-term upside in some markets and want to get a piece of the action – but that exuberance can have you acting irrationally. You only need to look at mining centres’ markets during the boom of 2012. People were paying eye-watering figures for properties site unseen. Because they could rent these homes out for thousands of dollars a week to transient workers, it justified the price in their minds. I know of stories where cashed-up buyers were paying $1 million for houses in mining towns because they could collect $2000 a week in rental income. But many ignored the inevitable. As the mining boom slowed and projects wound down, rental demand faded. These million-dollar homes plummeted in value to be worth a minor percentage of their original purchase price. That was a mighty painful drop for many investors.

Greed is also a magnet for marketeering sharks. It can have you buying poor-quality investments based on unfulfillable promises from unscrupulous operators. They will tempt you with the quick bucks to be made. These dishonest hacks play to your instincts of greed and desire and sell you substandard assets. In the end they will simply line their own pockets and leave you high and dry.

Yes, property investment is an emotional sphere, but don’t let it cause you real losses. Instead, utilise the skills of a qualified investment advisor. These trusted professionals will deliver guidance that’s in your best interests. They will steer you away from the emotions that can threaten your future financial security, and help you make the right decisions without emotion.

Always review any property location research and investment analysis data, with a professional, QPIA (PIPA Member) qualified & accredited ASPIRE Property Advisor Network Advisor. Never rely on glossy sales brochures or property marketing information, ensuring a property is right for your strategy. Property Investing is about BUYING a property that matches your goals and aligns with your investment strategy. Never be SOLD an investment, know your numbers!

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