Jump home hurdles with a single leap
THE housing affordability crisis has been tough enough for househunters with two incomes, but singles have been hit even harder.
While property prices in many areas soar, those flying solo are finding the great Australian dream out of reach.
Mortgage Choice figures show only 25 per cent of those who took out a home loan in 2016 did it alone – a fall from nearly 30 per cent in 2014. And data crunched by lender ME showed a similar pattern, with the number of single home loan applications falling by 8 per cent to 35 per cent in two years.
To make matters worse, rising house prices have seen average mortgage applications for singletons getting fatterthey have climbed by 11 per cent to $365,000 during that period.
ME head of home loans Patrick Nolan said single customers were getting creative.
“Some are looking at cobuying, buying with parents or getting funds from the bank of mum and dad,’’ he said. “More people are continuing to rentvest where they rent inner city, where their lifestyle is, but buy a property in the outer suburbs as an investment...They get on to the property ladder but it’s a cheaper cost.”
Mortgage Choice spokesman John Flavell said there was no sign of price pressures easing for hopeful property buyers, but said now was still a great time to buy.
“While property prices are rising, wage growth is stagnating, which is making it harder for Australians to afford property on their own,’’ he said. “But... interest rates continue to hover at record lows (and) property values continue to rise, which is providing investors and owner occupiers with good capital growth potential.”
Charlotte Paulson, 27, purchased her first apartment in an Adelaide’s bayside suburb, saving $500 of her pay each fortnight while living at home.
“For my deposit I saved up $35,000 (for a $255,000 property), it took me a few years,’’ she said.
“Living in Adelaide I felt lucky that I could buy by the beach …and I was determined.”