With less than two months left until Christmas, some homebuyers are making hasty property buying decisions that could negatively linger financially for years to come, according to the Real Estate Buyers Agents Association of Australia (REBAA).
REBAA President Melinda Jennison said a common conversation with buyers and investors at present is their desire to purchase and settle in time for Christmas, but that is not the best mindset for long-term property ownership or investment.
“It makes sense that people want to be settled into a new home in time for Christmas – or even have a property settled at the same time for investors – but the looming holidays should not be the defining reason to purchase a particular property,” Ms Jennison said.
“Unfortunately, being too rushed with your asset selection can cause serious financial ramifications for many Christmases to come if you have unknowingly bought a dud or a property that is not fit for purpose.”
Ms Jennison said with strong demand from buyers coupled with a low supply of available listings pushing prices higher, some property buyers are letting their fear of missing out over-ride due diligence and sensible decision-making.
“Over-paying for a property can result in under-whelming capital growth that can have consequences for your future financial position as well as your ability to upgrade to a new home,” Ms Jennison said.
“Likewise, buying an inferior dwelling because of a desperate desire for it be settled by Christmas makes little financial sense when you will likely own that property for years to come, and no doubt rue your hurried decision before long, too.”
Ms Jennison said some buyers are not performing adequate checks and balances on properties such is their desperation to purchase something before the holidays.
“Some are buying without performing adequate due diligence on a property, which may include not obtaining a building and pest report on a property or eliminating contract conditions to enable that to happen post-purchase for private treaty sales in some states,” Ms Jennison said.
“Other risky decisions include buying sight unseen or relying on friends and family to help with property buying decisions, when their emotional connection and relationship with the buyer can influence their recommendations.”
Ms Jennison advised homebuyers to take the time necessary to select the best property possible for their current and future needs as well as consider working with bona fide property buying experts, especially for investment properties.
“While it would be lovely to be settled in your new home for Christmas, what is ultimately more desirable and strategic is purchasing a property that suits your lifestyle now and well into the future,” she said.
Professional buyer’s agents are licensed real estate professionals that specialise in searching, negotiating, conducting due diligence, and purchasing property on behalf of buyers and hold professional indemnity insurance.
“By choosing a REBAA member, buyers can be confident they are dealing with an experienced and professional buyer’s agent,” Ms Jennison said.