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Why Buying a House on Emotion Is a Losing Strategy?

For years, economists have used the study of behavioral finance to explain the role emotions play in investment decisions. Their observations have turned up some interesting results:

• First, they’ve found that while investors know very well that the stock market has its ups and downs, some will still base investment decisions on the assumption that what’s happening now will continue in the future. For example, the home buyer driven by a hot market will engage in bidding wars, assuming that the market will continue to heat up. The buyer believes he or she has to buy now or lose out.
• Second, they’ve found that other investors follow the “anchoring” concept, in which they hold off selling an asset in hopes that it will increase in value despite evidence to the contrary.
  In this scenario, home buyers stubbornly anchor themselves to an offering price even though the seller and buyer are only a few hundred dollars apart.
• Third, they’ve found that some investors buy too much house for their budget or they forget about the crumbling foundation, because they love the seller’s décor.
• Fourth, they’ve found that other investors fail to see beyond the clutter as to possibilities of a home.

To prevent such problems, the emotional home buyer needs the perspective of a real estate agent.

Such a professional can separate the emotion from the investment so your dream house won’t become a nightmare.

Commemorate this year’s holiday celebration with picture-perfect photos that everyone will enjoy. Following are some tips to help you achieve photography success:

• Quick Clicks: Capture the moment when you can. Rather than risk the dreaded fake smiles and stiff poses, simply keep clicking. Some of the best pictures are those that are taken before or after the main event.
• Stick to Solids: Ask participants to wear solid colors. Plaid, paisley and other heavy designs tend to detract from the full impact rather than enhance it.
• Lighten Up: Good lighting can transform an ordinary picture into an extraordinary photograph, so take time to cultivate an area that compliments subjects and their surroundings. Early mornings or late afternoons create a warm glow for outdoor shots, while candles or seasonal lights add interest and warmth to indoor settings.
• Move Around: Static photos tend to look boring. Good photographers understand the need to take photos in a variety of settings and from different angles. Mix it up and keep your eyes open for those fun moments when people don’t realize they are being photographed. It’s the stuff memories are really made of.
• Young at Heart: Most holiday celebrations have a lead photographer, but impromptu shots add to the fun and tell the rest of the story. Hand out disposable cameras to the kids and other party participants to create an atmosphere of fun and discovery.

Here are the pros and cons of living in a condo or townhouse.

Pros

• A condo or townhome is low maintenance; landscaping and maintenance of the exterior structure are typically handled by the homeowners’ association (HOA).
• Many communities offer amenities such as pools, tennis courts and clubhouses.
• The proximity of neighbors may give you a greater sense of security.

Cons

• HOA dues increase your monthly outgoings and can rise in the future as maintenance and repair costs go up.
• Available parking for guests may be limited.
• Typically, there is less storage space than in a detached home.