As house prices skyrocket in Australia’s coastal areas, the market is described as “brutal” for families trying to buy a spot.
The mother of three, Rachae Hutton, is more and more ‘discouraged’ every day by the soaring house prices on the central coast of New South Wales.
Together with her husband, they are faced with the prospect of saving an “insurmountable amount of money” in a market gone mad.
“If we were to save anything beyond the absolute necessity, we would still be saving for three years for the amount we need to have a deposit and it is still not enough because the houses have increased by $ 100,000 over the course of from the last six months on the coast for three to four bedroom apartments, ”she told news.com.au.
The family are currently renting out a four bedroom property and cannot leave the area for family reasons.
At one point, the couple who each have a child from a previous relationship were faced with the impossible decision of whether having a baby together would rule out their dreams of homeownership altogether.
“We are seriously considering putting this on the back burner in order to provide a family home for the children and we would not have to move and we would get that level of security and that Australian dream. We ended up deciding not to put what we really wanted out of life for something that might or might not happen, ”she said.
“Even with a savings plan, if we postpone a baby, we still wouldn’t be close to buying a house until we had a third child, so we had to think about what we want? To create a family or do we want a family home and had to think about our priorities.
Ms. Hutton works 30 hours a week supporting businesses, while her husband is a butcher. They manage to save $ 1,600 per month and have saved over $ 13,000 so far.
She said she saw a house in Wyong, about 100 km north of Sydney, put up for sale that was not very “nice” and that they wanted close to a million dollars for the three beds. .
“I don’t understand how buying a home is actually achievable. We’re making a decent amount of money and we couldn’t afford $ 800,000 for a three-bedroom cabin, it’s a bit brutal, ”she said.
The 33-year-old said she frequently checks real estate listings.
“I found a three bedroom townhouse listed that might fit the three kids – one room is big enough for our two older kids to share – it’s less than $ 600,000, but it’s not left. than to be absent to even collect the money. We’re saving everything we can and we’re not even halfway through what we need for a mortgage, ”she said.
“It’s more and more frustrating when we earn a good income and have stable jobs. But saving with three kids and rent is so difficult.
What hurts the most for Mrs Hutton is the possibility that she will not be able to pass an asset to her children, aged 11, 9 and 1, and give them a ‘push’ in the future.
“I really don’t think that’s possible like it was before buying a property and the dialogue that Millennials and millennials are wasting their money on smashed avos, it really isn’t.” , she said.
“The generation before us baby boomers, they could buy a property with one income, one parent could stay at home and another could go to work or mum could work part time and dad full time and they could still. get a house and buy a house with less down payment because the ratio of salary increases to house increases was not as varied.
“There is no way a single income family would qualify for financing, let alone the asking price for properties. The options are limited when you have a family as you cannot get a one or two bedroom apartment.
Without extreme measures like moving in with relatives to save money, which is not an option for her family, Ms Hutton believes it is nearly impossible for ordinary Australians like her to get a foot on the ladder. of the property.
“Not everyone can live with mom and dad until they are 24 or go back to mom and dad to live with,” she noted.
She added that she was driving a 14-year-old car and would gladly save all their money and live on “two-minute noodles,” but that is not possible with children.
“We want to eat well and have decent clothes. I take them shopping at Salvos. We want to teach them the value of money and we are not too extravagant people, ”she said.
“We’re going to camp and barbecue at home, we don’t eat out, and we used two Dine and Discover vouchers because we just don’t go out.”
She thinks something needs to change as the couple can easily pay off mortgage payments, but can never save enough money for a deposit with prices skyrocketing.
Cathy Baker, manager of Central Coast’s Belle Property, described the market as a “little frenzy” at the moment.
“There are very low inventory levels, so anything that comes into the market is essentially selling in isolation, rather than competing, which means fetching a top price,” she said.
A recent four-bedroom, two-bath property that she sold on Scenic Rd in Killcare Heights was priced at $ 4.3 million, but sold for $ 5 million without the new owners crossing the threshold. doors. She said it last sold three years ago for $ 2.7 million.
Another property in the area was expected to sell for between $ 1.8 million and $ 2 million, but went to a US buyer through a virtual auction for $ 2.2 million. The two-bedroom property was last sold four years ago for $ 1 million.
Ms Baker, who worked as a real estate agent for 12 years, said the growth of working from home is also encouraging people to buy and split their time between Sydney and the central coast.
“In the last 12 to 18 months we’ve sold three times the volume we would normally sell in any given year and I wonder how many more properties could possibly come to market,” she said. .
“We can’t maintain this level of properties and this amount of sales and… I think that will have a stabilizing influence. “
A Sydney buyer recently broke Central Coast records paying $ 8.1 million for a 1970s beach hut, making homeowners $ 5.3 million in just four years.
There was always a strong interest in buying Central Coast homes for the holiday market, she added.
“When you look at the returns, they get $ 100,000 to $ 200,000 in vacation rental returns,” she revealed.
“It’s a very popular area for vacationing and so close to Sydney it’s an investment in something that’s quite lucrative.”