Tuesday, November 27, 2012

Regrets and Traps

What main regret did homebuyers have?
Although the percentage of first homebuyers* who had regrets about their property purchase is fairly low, at 17.7% nationally (but up to 20.1% in Queensland), the main regret (with over 27% nationally) was that they wished they'd bought in a different area. This was followed by: they wish they'd shopped around more for a property; and, they wished they'd waited until they could afford a property that was closer to their ideal property. 
Three 'traps' for first homebuyers
Paul Osborne highlights three other 'traps' that, in his experience, first homebuyers may fall into:
·         Buying a property that is too common and has limited scarcity.
“These include new construction apartments and generic housing estates".
·         Buying too far away from the CBD.
“Buyers often have remorse about getting something bigger – but located further out.  They find they don't really need the extra space but truly value the convenience of being close to the city."
·         Emotional buying.
“Many purchasers who engaged in emotion-filled auctions in 2009 and 2010 find themselves sitting in negative equity.  Some buyers regret how they bid at auction for their property." 

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