Underquoting by estate agents blamed by 15 percent of buyers for exceeding their property purchasing budget

A new property survey by lender ME reveals 22% of home buyers exceed their spending limit when they purchased their property.

Almost half, some 46% exceeded it by $30,000 or more.

Some 30% exceeded their budget by $50,000 or more.

There were 10% exceeded their budget by $150,000 or more. 

The most common reasons for exceeding their self-imposed limit were:

+ falling in love with the property (52%);

+ underestimating the budget required (28%);

+ impatience (20%);

+ underquoting by an agent (15%);

and getting caught up in a bidding war (12%). 

Some two thirds of those who went over their budget admitted some kind of negative consequence as a result, either financial or emotional.

ME Head of Home Loans, Patrick Nolan, said it was important "to stick to your spending limits.”

He added banks were legally obligated to only lend an amount you can afford to repay over the life of the loan, including at a higher interest rate.

ME’s survey is based on a representative sample of 1,000 Australian property buyers; completed in March 2018.