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On-the-spot property purchases ...

On-the-spot property purchases rising in Australia

Australians are increasingly purchasing properties without getting them inspected for their compliance with safety regulations due to their desperation to simply own a home, regardless of the state it is in.

News.com.au reports that this is the finding of new research carried out by Tic: Toc, which showed almost half of home buyers down under are now making offers on properties without getting building, strata or pest inspections carried out first.

On the one hand, this could be because they want to snap up deals that will provide a good return on their investment in the future before they disappear, but on the other hand, it may be due to the fear of missing out on owning a property.

As a result, many may be buying whatever they can afford, rather than a property that's in a habitable condition. Consequently, this may mean they have to spend more on doing up a property and on getting it to pass inspections, all of which could delay them actually moving in, and potentially compromise their home ownership status altogether.

Indeed, the research found that almost three-quarters of Australians are struggling to balance their ability to afford a property of their own with their fear of missing out, which is causing anxiety for many.

This suggests that a significant number of people could be parting with their hard-earned savings without much thought or advice, instead fuelled by the desperation to avoid missing out on owning a home.

Anthony Baum, chief executive of Tic: Toc, explained: "Regardless of whether the property market price growth slows down further, the last few years have changed vendor and agent expectations and, in turn, made an impact on the buyer experience."

In light of this, Mr Baum believes that this "accelerated pace between choosing a property, making an offer, having it accepted and exchanging contracts" won't be slowing down at any point in the near future.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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