- BuyersBuyers co-founders warn buyers against cutting corners and making purchases driven purely by FOMO
- Many fear missing out on red hot market conditions, as prices see a yearly rise of 21.7%
- Due diligence is key to avoiding catastrophic mistakes, buyers encouraged to engage professionals
The Australian property market is currently red hot with prices rising rapidly, but buyers are cautioned against mistakes that could see their property dreams go up in smoke.
BuyerBuyers co-founder Doron Peleg said these buoyant market conditions are commonly conducive to some of the most disastrous mistakes buyers can make.
Buyers susceptible to disaster
Mr Peleg said price inflation can lead to buyers cutting corners, propelled by a fear of missing out on obtaining their dream home.
“The media has reported in recent weeks buyers missing out on their dream homes due to errors and mistakes on settlement documents, but this is just the tip of the iceberg when it comes to the possibility of due diligence failures” said Mr Peleg.
Australian housing values have seen tremendous growth this year, recording the fourteenth consecutive month of growth in November.
As of September, housing prices reached an enormous 21.7% yearly growth according to the Australian Bureau of Statistics (ABS).
Fellow BuyersBuyers co-founder Pete Wargent echoed Mr Peleg’s sentiments, expressing that the rapid price inflation was propelling a widespread fear of missing out.
“When we see quarterly gains of this magnitude, buyers do tend to become panicked about securing stock more quickly, to avoid missing out on the immediate gains.”
Pete Wargent, BuyersBuyers co-founder
Mr Wargent said Hobart was the leading capital of housing value growth, rising by 8.2% in the September quarter.
This pattern of strong growth was not exclusive to Hobart however, with market conditions thriving in many of the capital cities.
“There were strong gains for Sydney at 6.2%, Brisbane at 6.1%,
Canberra at 6.1%, and Adelaide at 5.9%,” Mr Wargent added.
Mean dwelling price grew $42,000 in the September quarter, bringing the new mean to $863,700.
Due diligence the answer to avoiding a ticking bomb
Leaving your heart in the driver’s seat and making an emotional purchase based on a fear of missing out can lead to disastrous results.
Mr Peleg advises buyers to always do their due diligence, including engaging professional services such as a mortgage broker, solicitor, and a building and pest surveyor.
“Our national panel of buyer’s agents spend all day every day in the market and
negotiating to help you buy the right property at the right price is exactly what they do.
“It’s well known that changing jobs and moving home are two of the most stressful life events, Australians ever go through,” said Mr Peleg.
Mr Peleg adds that employing a buyer’s agent can save indispensable time, cost and stress.
“This year activity in the housing market looks set to remain elevated right through until Christmas, with high numbers of listings, and buyers eager to make a purchase before the borders reopen and hundreds of thousands of visa holders become eligible to enter Australia,” he said.
“We only caution that purchasing a property is often the biggest financial decision Aussies ever make. Don’t make critical mistakes in the rush to buy something quickly.”
Doron Peleg, BuyerBuyers co-founder