Nobody likes missing out on a good thing. But then again, who likes overpaying? So how do you strike the right balance when both fears can work against one another?
The property market rarely stands still. Interest rate movements, the number of homes listed for sale, and even the time of year can all drive shifts in the market.
And change plus commitment isn’t something we’re all comfortable with.
It can even see us put mental traps in place that mean we panic about missing out on a good buy, or alternatively, we convince ourselves it’s better to sit things out on the sidelines.
Let’s take a look at three mind games that can work against home buyers – and how you could beat them.
Fear of missing out – uh oh, FOMO
FOMO can be a real thing for home buyers, and it’s possibly starting to have an impact on the property market once more.
According to REA Group, today’s buyers are being gripped by a sense of urgency to make their move into the market.
The reason?
Growing expectations of interest rate cuts are sparking concerns that property values may soon skyrocket again.
Already, research firm CoreLogic says market data points to further growth in home prices.
The result is that autumn is shaping up as a particularly busy season as buyers look to race in before values head higher.
So should you sprint into the market too?
Well, before racing in to buy a home, have a chat with us and we can let you know if you’re home loan ready today.
Fear of better options – let go of FOBO
Some buyers never quite get into the market because of nagging doubts that an even better property could come along.
The thing is, no home is perfect. Buyers often find a bit of compromise is what gets them into the market.
To avoid FOBO, jot down the essential features you’re looking for in a home. Then back it up with a list of nice-but-not-necessary features.
If you can find a property that ticks the boxes for all, or most, of the must-haves you can be confident you’re buying a place that will suit the majority of your needs.
Fear of over-paying – forge a path past FOOP!
It’s possible that humans have wrestled with the question “am I paying too much?” for centuries.
No one wants to pay over the odds for their home.
However, this shouldn’t freeze you into taking no action at all.
Two simple steps could help dispel concerns about whether you’re paying too much for a property.
First, do plenty of research and check out comparable home values in the area you plan to buy in. It can help you identify if the asking price for a place is reasonable or over-the-top.
Remember, you can always attempt to negotiate on price – especially if you have home loan pre-approval, which shows sellers you’re a serious buyer.
Second, and perhaps more importantly, remember that property values typically rise over time.
For example, data from SQM Research shows that back in 2009 the average asking price for a house in Sydney was about $755,000. Fast forward to March 2024, and that figure has jumped to more than $1.9 million.
Hence the saying: “time in” the market generally beats “timing” the market.
Because if you plan to hold your home or investment for the long term, chances are you’ll look back at what you paid, and be glad you purchased when you did.
But … to help make sure you don’t purchase a house that’s beyond your means, get in touch with us today and we can help you work out your borrowing power.
In turn, you’ll be able to work out what your home buying budget is, and what your monthly home loan repayments will likely be.
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