FOMO epidemic sweeps property market

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%)

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