Tips to overcome Your Fears and Make an Investment in Property

Want to Buy a House? -Tips to overcome Your Fears and Make an Investment in Property

Have you ever wondered why some people hesitate to invest in house or property though they like to own a house or property? Or are you also one among them? Do you wonder how some people keep on acquiring more and more property?

If you try to analyze the psychology behind these two behaviors, then you will understand that these two behaviors are linked to two psychological factors -

 Fear

Fear is the main reason for the behavior of the first group of people who hesitate to buy house or property. It is the fear of losing money invested or the property itself that keeps people away from making an investment in property.

 Control

The power to understand and control the fears associated with investing in property is the main reason for the behavior of the second group of people who acquire more and more property.

So if you understand your fears (problems) and try to control (solve) it, then you can make your dreams (owning a house or property) come true.

Understanding Fear

There are a lot of fears that are associated with buying property. Most of the fears people have in this respect are justifiable also. These fears are one the same which entrepreneurs face while starting a new venture. In business, these fears are termed as Risks. Entrepreneurs understand and calculate to an extent the risk involved in their venture and takes appropriate actions, thereby making their business a success. If ordinary people apply the same techniques while investing in property, then they can easily solve their problems related to it.

As in business, in making investments in property people should:

Identify and calculate all the risks involved

Mitigate or minimize each risk

Make a decision based on the overall risks involved

Controlling Fear

The first step in controlling fear is identifying fear. There will be a number of fears associated with investing in property. Identify all the fears associated with it. Once you have identified the fears, take necessary actions or counter-measures to mitigate or minimize each fear. But no counter-measure is foolproof. So, even after taking necessary counter-measures, some fear will be left off. This is called residual fear. You can adopt more counter-measures to overcome or minimize the residual fear. It all depends on how well you can identify and handle each fear.

Here is a guide which will help you to overcome your fears while buying a house

Fears	Counter-measures	Residual Fears	Further Counter-measures
What if I lose my job and can’t pay the mortgage?	Buy a house that can be rented out easily so that the mortgage can be paid from the rent.	What if the tenant does not pay the rent?	Take an insurance which will cover this risk
What if the interest rates rise too much that I can’t afford to pay it?	Take a mortgage where interest rate can be fixed for a certain period of time.	What if the interest rate rises after the fixed period of time and becomes unaffordable?	Take a mortgage where the interest rate can be fixed for the whole term.
What if the equity share drops after I buy a house?	Do not sell the property until the equity share rises. Rent it out for this period	What if I have to sell before the equity share rises?	Take an insurance which will cover this risk.
What if I have to move out from the present place of living for any reason?	Buy a house that can be rented out easily so that the mortgage can be paid from the rent	What if the tenant does not pay the rent?	Take an insurance which will cover this risk
What if major repairs have to be undertaken and I cannot afford it?	Take insurance with comprehensive covers.	What if repairs for aspects not covered under comprehensive cover needs to be undertaken?	Take insurance for individual items not covered by comprehensive policy