Research and Realism are Crucial
Common opinion holds that it’s harder than ever to break into the real estate market but there’s more to the story than simply the affordability of first homes, according to RE/MAX Sales Consultant, Tiffany Krause.
As the debate around housing affordability heats up, it’s worth noting the average first home buyer in Queensland borrows $302,000, based on Australian Bureau of Statistics data, and spends between $300,000 and $350,000 on their first property.
“Locally we are lucky there is a selection of houses and units in Toowoomba and surrounding areas under $300,000,” remarked Miss Krause, who bought her first home some 12 months ago.
“Unfortunately, this debate is having some misguided consequences with members of a generation believing the odds are stacked against them. In my profession, I often hear comments that the bank won’t lend them money yet they hold permanent jobs generating good wages or salaries without dependants; credit card debt is too high, car loan has a long time to go or their lifestyle is costing too much.”
“The hard cold fact not being articulated in the debate is that the majority of us young people want everything like their dream home now rather than acquiring a smaller or affordable property to start with. Another issue not being talked about is the lack of financial literacy in our younger generation. From my experience in the field, there seems to be a lack of understanding about buying within your means and budgeting to save up for that deposit,” Miss Krause continued.
“There’s also a need for patience as it will take some time to save sufficient deposit. Meanwhile you can spend time researching the market and adopting a disciplined budget and savings plan,” Miss Krause added.
Miss Krause was adamant that if she could do it so could most young people.
“Talk to a professional real estate agent in order to gain as much local knowledge about the better streets and suburbs close to infrastructure like schools, shops and parks. Seriously, buying your first home puts you on the road to financial security. Property values increase over time hence you have greater equity in your prized asset,” Miss Krause concluded.