What Sports Can Teach A Homebuyer
The nation busied itself to pinpoint the exact reason that led to India losing to the Champions' Trophy to arch-rival Pakistan on June 18. For many, Team India's “over-confidence” that encouraged it to defy discipline was the prime reason why the world champions gave an easy victory to the team led by skipper Sarfraz Ahmed. How could this be even remotely connected with property markets?
You did not come to this site to read about cricket after all. Buying a home is a serious business, and you are in no mood to analyse the outcome of a cricket match. We suggest you do, without limiting this analysis to this particular match. Sports have a lot to teach us that remains relevant in all walks of life, including financial planning. If you are game, sports have the potential to greatly impact your home-buying decision and help you become a successful investor.
Performing under pressure
When most of his team members are back to the pavilion, a good cricketer would not get emotional about the fact. He can deliver results only when his nervous are calm and emotions are not running wild. He knows that there is a lot of pressure on him to perform, but he would not let this knowledge overwhelm him. Rahul Dravid showed us that. There is a reason why the veteran cricketer earned the name, The Wall.
If you are going home shopping, you can learn a lot from the Wall.
Its financial impact on our personal lives notwithstanding, house purchase decisions are often founded on emotions. You would want to invest in a house because your wife's family looks down upon you for living in a rented place. Unable to take the pressure, you hasten to book a flat as soon as possible without understanding the implication of the move on you and your family. You could manage to get the purchase financed by a bank, but the EMI burden is proving to be neck breaking because you are the sole earning member in your family. In case of an unfortunate event, you run the risk of losing the house completely. This may not be a good starting point to begin your purchase. You have to go on your own pace as far as making big-ticket investments are concerned. Let others not rush you into it.
Stand and wait
Like all of us, cricketers go through bad phases during when their performance takes a hit. That does not stop them from trying and coming back to conquer again. Yuvraj Singh can be cited as an example here. After a prolonged illness, Singh made an astounding comeback and dazzled the critics. What could have got him going when things went pear-shaped? The truth is losing patience is not an option for a sportsperson.
Similarly, prudent home purchase also has a lot to do with patience. All your friends might have been investing in property, considering the prices are dropping. You, on the other hand, do not find yourself financially prepared to do the same. In such a situation, there is no need to rush. Let us work to make the situation conducive for a property purchase first. If you did your homework, you might be able to grab a good deal even at a time when prices have moved upwards.
Discipline yourself
Of all the things that a sportsperson can never afford is lack of discipline. Any oversight here could mean the end of their entire career. The history of sports is full of such examples. Later, you could only regret. As American motivational speaker Jim Rohn puts it "we must all suffer one of two things: the pain of discipline or the pain of regret or disappointment”.
Similarly, home purchases require you to exercise a certain amount of financial discipline. If you are trying to save a certain amount of money to make the down-payment, for instance, you have to stick with a plan. You cannot afford to get carried away and spend the money in some leisure activity. This could delay your purchase longer than you think. Also, when you are paying an EMI, you have to ensure there is sufficient balance in your account every month. You may also have to curb of instincts of indulging in personal luxuries when you are repaying a debt.
Also Read: The Homes Sachin Tendulkar Loves