FOMO epidemic sweeps property market

By |

The fear of missing out is proving a strong force in getting people into the property market as a new survey reveals many recent home buyers purchased simply out of fear that special deals or current buying conditions wouldn’t last.

More than half (58%) of recent home buyers participating in the survey – commissioned by Commonwealth Bank – reported suffering from ‘FOMO’ (Fear Of Missing Out) when purchasing their properties.

The survey, which looked at influencing factors behind more than 1,000 Australians’ decision to buy a home, showed low interest rates and strong auction clearance levels are making many buyers feel rushed.

The survey indicated the majority of home buyers had rushed into their purchases, neglecting due diligence processes.

“Whether it’s family pressures, emotions, or a good financial deal, our research also highlighted some of the key reasons Aussies are rushing in and buying property before they are ready,” a Commonwealth Bank spokesperson said.

Key factors included:

·         89% of subsequent home buyers cite additional family pressures (a new baby, pregnancy, kids starting school etc.) as the reason driving them to buy quickly

·         Many investors also admitted to negotiating a price before doing their due diligence (55%) – though with differing motivations to subsequent home buyers. The research revealed they are driven to buy more quickly because they believe they have found a good financial deal and don’t want to miss out (30%)

Do you have more than $200k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : freshwater , reservoir , bligh park , nightcliff , marrickville

go back
  • Cameron McEvoy - Property Correspondent says on 13/09/2013 11:38:13 AM

    As the article states; no matter how much the 'FOMO' feeling pulls on your heartstrings and lulls you into thinking you need to rush, rush, rush and act now; without due diligence, no property buy plan is a smart move.

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here