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FOMO, FOBO and FOOP – how they can hold you back

Nobody likes missing out on a good thing, but then again, who likes overpaying? 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 is not something we are 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 we convince ourselves it is 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 – FOMO

FOMO can be a real thing for homebuyers, and it is 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. 

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 are home loan ready.

Fear of better options – 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 comprise what gets them into the market. 

To avoid FOBO, write down the essential features you are 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 are buying a place that will suit the majority of your needs. 

Fear of overpaying – 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 should not freeze you into taking no action at all. 

Two simple steps could help dispel concerns about whether you are 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 are a serious s 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. If you plan to hold your home or investment for the long term, chances are you will 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 is beyond your means, get in touch with us and we can help you work out your borrowing power. In turn, you will be able to work out what your home buying budget is, and what your monthly home loan repayments will likely be. 

Phone: 1300 855 022

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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