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First-time homebuyers are overwhelmed at skyrocketing property prices and “extreme deals”, such as historically low interest rates and the reverberations from the COVID-19 pandemic that have overcharged the property market.
Recent data from property research firm CoreLogic found Australian property prices are rising at the fastest rate in 17 years, with FOMO — or the fear of missing out — named as one of the primary drivers.
After a call to readers our inbox was overflowing at the sight of messages from buyers. Despite being approved for financing, they are continually outbid by buyers who offer more than the asking price.
Aimee Lee Koch is a full-time worker, single, and has her deposit ready for moving. She isn’t concerned about getting financing. She lives with her mother to save as much money while her furniture is still in storage.
“It took me years to achieve financial security after my fiancee died. Now, I have all the resources to make a great home sale. Extreme offers of $1,000-$40,000 more than the asking prices are getting my house offers knocked off the park. Ms. Koch stated she is at the stage where she would give in.
“Honestly, it was a joy to buy my first house.
“The market makes my feelings so low and hopeless.”
Reader Rajesh, his six-figure earner wife, has moved in to help increase their deposit.
He stated that he is actively searching for buyers since six month. He has had to compete with buyers looking for smaller properties or who have used the equity of their parents to guarantee.
He reminded the buyer to obtain building and pest inspection reports for any properties they are unsure about.
He said that these reports can be expensive and that reviewing a contract of sale can be costly.
If we don’t do our research on every property we pass up, we could lose hundreds of thousands of dollars per week. First-home buyers in this market need to be treated more fairly.
James Butler, a Victoria resident recently sold an apartment. He is now looking for a home. Butler says that there is a lot demand for properties, which is driving up the pace at which property offers are made.
It almost seems like a house is up for auction and it sells in a matter of days. It could go to auction, but it’ll end up selling privately due the demand,” Mr Butler said.
“So, now, I believe that we should go to top of the sale price to have a chance at a new home.
Chloe Riley is a resident of regional NSW. She lives with her partner, and their two children. She claimed that agents at almost every house she visited were phoning from Sydney.
Ms Riley explained, “We finally got an approval for an offer. A building inspection was completed. We took our friends and family to the house to have a look. However, just a day before we went on the conveyor and swapped contracts, real estate agents assistants called us and informed that they had accepted an even higher offer.
“We know that it is in the seller’s best interest to get the highest amount. But it’s a real kick in your guts after waiting so much and trying so hard to save enough to deposit.
The pain won’t go away anytime soon.
In an analysis of the Reserve Bank’s monetary statementDr Shane Oliver, Chief Economics Officer at AMP, stated that house prices could rise between five and ten percent through 2021. The same will happen next.
Dr Oliver said that “it would appear that even in the midst of a global crisis, Australians still love nothing better than getting into new homes.”
“It makes sense for many people at the moment. Credit is available starting at $55.
“Despite the fact Australian property is amongst the most expensive globally relative to incomes and rent, household interests payments are at their lowest point since the mid-1980s.”
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