Fear of missing out drives the market
RESEARCH from Commonwealth Bank reveals many Aussies believe property prices are being steered by a fear of missing out on property. The research revealed the majority of home buyers (65 per cent) believe property prices are being steered by a fear of missing out, which is causing most (58 per cent) to rush in and negotiate a price before they have done their due diligence.
According to the research, the fear of missing out psyche is also having an impact on buyers’ emotions with 49 per cent worried that they would lose the property to another buyer.
Dr Timothy Sharp, clinical psychologist, says, ‘‘Frustration and a fear of missing out are typical reactions associated with the complexity and importance of buying a property. It is however the biggest financial decision most of us will ever make so it’s crucial that the decision is a rational one.’’ Property buyers are also motivated by various external factors when it comes to making a decision quickly: 89 per cent of subsequent home buyers admit life events play a significant part in influencing their property purchasing decisions, citing additional pressures such as having a new baby and the kids starting school, as driving them to buy quickly. In all 55 per cent of investors admit to negotiating a price before doing their due diligence and 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 per cent). For first home buyers the top motives for making a fast decision are because they are tired of renting (22 per cent) and because they believe it is cheaper to buy than to rent (21 per cent).