FAMILIES TO STRUGGLE
BUDGETS SHRINK FOR FIRST HOME BUYERS
FIRST homebuyer budgets have shrunk by $128,000, with Townsville first home builders Matt and Kiara Julien just relieved they acted when they did.
The couple, who had been renting for years, were able to move into their home before the birth of their first baby Mason, who is now 7 weeks old.
Matt, an accounts co-ordinator, and Kiara, a public servant, said that they were glad they made the move before the RBA’s aggressive interest rate moves.
“In hindsight, yes, glad we did,” he said. “I think we bought at the right time as just after we finished the build, material and trades price skyrocketed.
“And interest rates just kept going up.” Matt said it would be tougher now than when they signed on for their new home build.
Just 10 months ago, a typical first homebuyer with a gross income of $83,000 and a 20 per cent deposit could borrow $500,000 and spend up to $625,000.
But now, those same buyers have much less to spend, with a borrowing capacity of $372,000 and a maximum purchase price of $465,000.
In the wider Townsville region, that is still achievable across 44 house suburbs but in other parts of the state, it is almost impossible to buy a house for under $465,000.
The couple built their home on a 609sq m block at The Reserve, within the Stage One release of the Urbex development at Bohle Plains.
Urbex sales manager Sue Bidgood said many other couples who had previously been struggling to find a home were finding hope in the area.
“With Townsville currently experiencing historically low vacancy rates around 0.6%, one of the biggest pain points for locals currently is securing a rental in such tight markets,” Ms Bidgood said.
“The Reserve is aiming to provide a whole lifestyle and community experience at affordable prices, offering an opportunity for local families to finally have a home of their own.”
Matthew said building their own home was always “the dream” and he urged young buyers to chat with a financial Adviser first.
“They were able to give us some tips and tricks to help us with our deposit and getting approval that we may not have known about otherwise.
“We feel more financially stable now knowing that what we save is ours, and what we spend on our repayments is ours,” he said.
“We managed to lay the slab and within five months, our house was built.”