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- Panic Buying & Swimming Ponds 🏊🏼♀️
Panic Buying & Swimming Ponds 🏊🏼♀️
Agenda free insights
Welcome to Property Hack! Shedding light on the complex world of property!
Panic buying or panic pausing - How much does the Fear of Missing Out (FOMO) or Fear of a Better Option (FOBO) influence you?
Swimming ponds - Diving in like the Beckham’s, Ed Sheeran & Dominic West. Some see it as a positive, but not every neighbour has approved.
Snippets - 60 day Airbnb cap in Australia’s Byron Bay to commence, and Zac Effron’s sustainable home design.
Let’s go!
Competitive Markets
Does a fear of missing out change your priorities?
There are a number of factors that can influence your decision making. Buying property is a high stakes decision for most. Ideally, this is when you'd like your thinking to be clear, productive, and free from distractions.
Feelings of fear - a fear of missing out, fear of a better option or even fear of making a mistake - could influence you to move too quickly, or not move at all.
Recognising these emotions and why they’re happening can then help to apply reason and logic.
The crowded open home, where people are marking their territory, discussing where their sofa will go. Is that rising competitive feeling because this house is also genuinely right for you too? Or are you just hoping to secure it before someone else does - with your actual preferences being pushed back.
“The perceived scarcity can inspire a sense of urgency within consumers, and they make purchasing decisions faster than they usually might.”
Patrick J McGinnis, who first coined the term FOMO, gives some helpful ideas on practical decision making.
“Determine what you actually want so that you can resist distractions”
Which might seem common sense, but in a fast moving market, with herd mentality creeping into thoughts and emotions, there may be less room for clear, objective and independent thinking.
When it comes to high stakes decision making, Patrick J McGinnis highlights that,
“You will need to think deeply, gather data and then make a decision based on reason, rigour and experience”
We talked with Mike, who was part of a rising, fast paced, competitive market. People were queuing out the door for open homes. Some agent’s were asking for a best and final offer right after the first open home, other’s weren’t responding to calls.
“There was pressure to make such a quick decision - and for such a significant purchase.”
Mike described how it was a very distracting, high pressure market. The high demand and scarcity of supply, along with prices continuing to go up - there was a fear of being priced out, or a better property coming along after.
To deal with these market conditions and the need for quick decision making, Mike found himself getting caught up in the competitive environment, putting offer’s in on places that weren’t at all right for him.
After missing out on several homes, he was able to take a step back and found a process that helped him to find the right balance.
I had to be very clear about what I wanted and also what I was willing to settle for.
I spent a lot of time researching the area, the market and comparables. So I felt ready.”
The repeated process of viewings, almost buying and then missing out, concerning building and pest reports, although disheartening for Mike, in some ways prepared him for that final decision.
“Hot market’s feel like you’re being put on a crash course in buying.
The One! 🏆🏠
A property was listed mid week and this time he took all of the lessons learned and applied them.
He was quick to act, securing a private viewing before the first open home. He did multiple drive by and walk by’s the property at every opportunity to let the location, street view, and surrounding area sink in.
He made an offer prior to the first open home, still within his budget but slightly above the guide - and with the condition for the first open home to not go ahead.
The offer was accepted.
Mike felt that had the first open home gone ahead - the property was very likely to have gone for much more. After his purchase, the market continued to rise and the valuation remained comfortably above his purchase price.
The property having a cooling off period allowed him additional time to research and reaffirm that this was the right purchase for him.
“Everything is more compressed [in a hot market] - I had to try and change my approach to match that environment.
Having a cooling off period allowed Mike to be able to take his time with further checks, and sleep on his decision - which he feels if you get this luxury, it’s a very helpful one.
“By conducting due diligence and then injecting some precision into your thinking, you are taking control”
Mike felt that it helped to be flexible. Although this property was not exactly what he set out looking for, it was as close to perfect as he needed and for that point in time. And he felt that this was very much his own thoroughly researched decision, free from the pressure and distractions of open home viewings.
“You may not get perfection, but you do want to find something with good value”
The end result:
Although time may not be on your side in a hot market, being able to separate facts and logic from fears can be beneficial.
The repeated frustrations of open home viewings and missing out on properties, can hopefully build learning blocks for the next best property that comes along.
Thorough research, calling on trusted people and professionals, being prepared and ready to act can all make a difference.
Swimming Ponds
Photo Credit: Josef Kubas
Natural swimming pools also known as swimming ponds have been gaining popularity.
The Beckham’s have one. Dominic West is about to embark on a second one and Ed Sheeran has just had a swimming ban overturned on his.
Swimming ponds use careful filtration that incorporates plants, biofilters and natural processes, replacing chemicals. They can support local wildlife and biodiversity, creating natural habitats in your backyard.
Their natural appearance can also enhance the swimming experience and property aesthetics.
Drawbacks?
Swimming ponds can have higher initial costs due to specialised design and construction. They require management of plants and wildlife for filtration. Council approvals would need to be sought to ensure safety and environmental compatibility.
Read more…
Snippets:
Byron Bay has implemented a 60-day cap on non-hosted short-term Airbnb rentals (with the exception of two areas)
Zac Efron has plans to build an eco-friendly home in Australia, incorporating green technologies and integrates with the natural landscape, reflecting environmentally conscious design principles.
Quote for the week:
“Decisions are the frequent fabric of our daily design.”
Thanks for reading! If you have any insights to share, simply reply to this email and it’ll be received by the Property Hack team.
Have a great one!
Sam & Jane
The Property Hack Team
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Information in this newsletter is general in nature. Undertake independent research and seek trusted professionals. Names are changed for privacy.