Desperate first homebuyers have all but given up on being able to afford a home in WA in the near future as prices, interest rates and competition soar.
The Reserve Bank of Australia announced on Tuesday a 0.25 hike in property rates — the first of many expected to come this year.
It is the latest blow for young workers like Leeming’s Peter Brotherson, who says he has never felt further away from entering the market.
The 27-year-old says he has a healthy deposit saved up and has been searching for the past 12-months, attending inspections with his partner every weekend.
Mr Brotherson has a budget of $750,000, even selling his car to help bump up his borrowing power.
But since his search began, he has faced one barrier after the next.
The Federal Government rolled out its controversial five per cent deposit scheme in October, which has added an average of $100,000 to the price of a house as investors rushed to secure property before competition was boosted.
And now the first rate increase in two years has young adults like him feeling bleak.
“It’s just making it harder and harder to have a chance,” Mr Brotherson said.
“Now it feels like renting might be our only choice, and maybe we’ll never own a home.
Prices weren’t being matched by quality either, with mammoth price tags being slapped on houses that were “trashed”.
“A lot of places are damaged and have rubbish everywhere. The quality of the houses are not reflected by prices,” he said.
“If you’re buying a house that’s trashed, but they’re still asking for a crazy amount.”
Mr Brotherson said most inspections he attended saw dozens rock up who were willing to pay far above the listed price to secure it on the spot.
He said he had pushed back other life goals like travelling and starting a family until he could secure his first home.
https://thewest.com.au/business/property/first-home-buyers-all-but-given-up-on-buying-in-wa-despite-jump-in-loan-applications-after-deposit-scheme-c-21527342
