Housing 'FOMO' as home buyers seek 'neighbourly' areas

author-avatar By on December 16, 2020
Housing 'FOMO' as home buyers seek 'neighbourly' areas

Buyers agents have said there is 'fear of missing out' in housing, while new research indicates people have become more 'neighbourly' in 2020.

Real Estate Buyers Agents Association (REBAA) president Cate Bakos said January usually spells a quiet time for housing, but things could be different in 2021.

“There is no doubt FOMO is affecting many people who feel they might be priced out of the market in 2021,” she said.

“In a moving market like this, buyers need to make sure they are buying the right property and not making a costly mistake they will later regret."

This coincides with a survey from QBE that found a third of respondents claim they know their neighbours better now than in previous years, with 61% saying they'd like to build better neighbour relationships.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.

QBE claims data from the past three years also indicates 15% more theft claims are made during the festive period, as thieves know people won't be home as often.

This is why it's important to build relationships with neighbours, according to QBE chief customer officer of personal lines Eleanor Debelle.

“Our research shows that three in four of us feel more comfortable going on holidays if we know our neighbours are keeping an eye on things," she said.

"Reaching out to people who live nearby could be a great way to enhance your security and also build on that sense of community that has started to develop over the year.”

“If you’re not in the habit of letting your neighbours know when you go away, now would be a great time to start. Aside from increasing the security of your home, it may also strengthen the relationship you’ve built during 2020.”

QBE's survey was conducted in November and polled 1,004 people aged 18-65. 

via GIPHY


Photo by Jaco Pretorius on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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