This single Sydney mum finally cracked the real estate code and got herself into a dream home, without any help from the government’s controversial new inducements.
Nurses, teachers, vets and bricklayers must spend over half a century saving to buy a Sydney property, according to new research from Finder.com.au.
The data found that it can take as long as 52 years for a single buyer in these professions to put down a 20 per cent deposit on a median Sydney property valued at $1.6m.
Social workers, psychologists and plumbers were also in the 52-year club, while dentists and engineers could take as long as 42 years.
Finder.com.au head of research Graham Cooke said it was “shocking” how long it would take to save a 20 per cent deposit following recent property price hikes.
He noted that prices were climbing in most areas at a faster rate than wages, with prospective homebuyers struggling to keep up.
“People think rates are the be all and end all, and we hear so much about price’s but what’s less discussed is the deposit,” Mr Cooke said.
“People don’t realise just how long it now takes to save a deposit to get on the bottom rung of the property ladder.
“That bottom rung is just getting higher and higher.”
Mr Cooke said the findings showed blue-collar workers were in the best position when it came to buying a home.
Tradies’ apprenticeship pay meant they could start saving faster than white collar workers who often only started to get an income above minimum wage after finishing university, he said.
Mr Cooke also said the findings showed how long it would take a single income earner to save a deposit and noted that while this did not reflect the reality of most buyers, it was “scary” just how out of reach the market had become for singles.
“You have to have a pretty decent amount of income to buy as a single earner,” he said.
Mr Cooke was doubtful that the federal government’s expansion of the First Home Guarantee Scheme would radically improve market accessibility for new buyers.
When it was announced back in August, Prime Minister Anthony Albanese said the expansion was focused on “Getting more Australians into their own home quicker, while saving them money along the way.”
While the scheme now allows first-home buyers to purchase with deposits of five per cent, Mr Cooke said this could actually put buyers in a worse position financially.
“You could get help with the deposit, but you are borrowing more,” he said.
Your Future Strategy managing director Gareth Croy echoed this, saying the scheme was drawing first home buyers into “really large mortgages”.
“After that, there’s no more borrowing capacity,” he said.
“Once they’ve got their home, they’re unlikely to be able to start then reinvesting as well.”
Common properties attracting interest from first-home buyers include four-bedroom, two-bathroom houses in the outer west and inner west terraces.
Recent sales suggest these types of properties sell for in-and-around Sydney’s new median house price of $1.602m.
Mr Croy said the danger of the scheme was creating more demand than the market could handle.
“If there’s a shortage of property, then it’s invariably going to have an impact on the increase of property prices, as opposed to getting more people into properties,” he said.
Single Mum’s Big Property Move
This is why single mum Kate Heussler chose to buy before the scheme came into effect, aiming to avoid price hikes and a massive mortgage.
Ms Heussler said she realised her first home loan was going to get even larger if she did not buy when she did.
“Even though I could have been loaned more, I didn’t want to be a first-time homeowner dealing with a million-dollar loan,” she said.
“If I didn’t get something then, I was going to be priced out for another five years.”
Ms Heussler saved up for the best part of a decade while raising her daughter, before buying her one-bedroom unit in Sydney’s Northern Beaches.
She said, “Everything changed” when she started educating herself on budgeting and investing.
“Everything I earned, I prioritised into the bare essentials like rent and groceries and childcare,” she said.
“I rented a very tiny apartment that was affordable.
“So, I was happy to live below my means for a significant portion of 10 years, and that’s how I got to where I am today.”
Ms Heussler recalled it being a difficult journey getting into Sydney’s highly competitive property market.
“I had to completely park my ego and recognise that I can’t compete with a dual income,” she said.
“I can’t compete with parents who are supporting their kids or buying it on their behalf, and I can’t compete with generational wealth, which is what I saw at every open home.”
She said she had to “stick it out” when times got tough.
“After two months of just making offers and having them fall through simply because someone came in with a much higher offer, I was starting to feel a bit deflated,” she said.
“But soon I found somewhere in the right place at the right time, and here we are.”
Career:
Assumed starting salary:
House deposit, Sydney (years):
Pharmacy
$51,286
49
Creative arts
$53,768
52
Communications
$57,904
52
Veterinary science
$62,040
52
Business and management
$64,108
49
Agriculture and environmental studies
$64,625
52
Humanities, culture and social sciences
$64,728
52
Psychology
$65,142
52
Sign-writer/Painter/Glazer
$66,511
52
Science and mathematics
$67,210
52
Rehabilitation
$67,210
50
Architecture and built environment
$67,313
49
Nursing
$67,417
52
Health services and support
$68,244
51
Law and paralegal studies
$68,244
48
Computing and information systems
$68,968
42
Teacher education
$72,380
52
Engineering
$72,380
42
Social work
$72,794
52
Bricklayer
$75,329
52
Plumber
$76,297
52
Carpenter/Joiner/Stonemason/Tilelayer
$76,996
52
Plasterer
$77,550
52
Medicine
$77,653
44
Roof Tiler
$87,890
50
Dentistry
$93,060
42
Source: Finder.com.au.
About Your Future Strategy
Your Future Strategy is a multi-disciplinary financial services firm with experts across the financial landscape, including qualified professionals in financial planning, strategic accounting, lending, investments, estate planning and superannuation.
As financial strategists, they help create a well-designed pathway for people to tick off financial goals to give them choice in their future, whether that’s saving for children’s schooling and university, building a significant property portfolio, creating and protecting their legacy, or retiring early.
In a recent interview with 10 News, Gareth shared how “being asleep at the wheel” can stop you from making the most of the wealth you’ve already built.
The following article was taken from news.com.au and featured in The Daily Telegraph. Read the article in full below: https://www.news.com.au/finance/real-estate/everything-changed-single-sydney-mums-homebuying-epiphany/news-story/589fa3c69bef9b256de2ce35fdf44ddf?btr=35fc8b85088b2696e7714e7842f4b2fb
This single Sydney mum finally cracked the real estate code and got herself into a dream home, without any help from the government’s controversial new inducements.
Nurses, teachers, vets and bricklayers must spend over half a century saving to buy a Sydney property, according to new research from Finder.com.au.
The data found that it can take as long as 52 years for a single buyer in these professions to put down a 20 per cent deposit on a median Sydney property valued at $1.6m.
Social workers, psychologists and plumbers were also in the 52-year club, while dentists and engineers could take as long as 42 years.
Finder.com.au head of research Graham Cooke said it was “shocking” how long it would take to save a 20 per cent deposit following recent property price hikes.
He noted that prices were climbing in most areas at a faster rate than wages, with prospective homebuyers struggling to keep up.
“People think rates are the be all and end all, and we hear so much about price’s but what’s less discussed is the deposit,” Mr Cooke said.
“People don’t realise just how long it now takes to save a deposit to get on the bottom rung of the property ladder.
“That bottom rung is just getting higher and higher.”
Mr Cooke said the findings showed blue-collar workers were in the best position when it came to buying a home.
Tradies’ apprenticeship pay meant they could start saving faster than white collar workers who often only started to get an income above minimum wage after finishing university, he said.
Mr Cooke also said the findings showed how long it would take a single income earner to save a deposit and noted that while this did not reflect the reality of most buyers, it was “scary” just how out of reach the market had become for singles.
“You have to have a pretty decent amount of income to buy as a single earner,” he said.
Mr Cooke was doubtful that the federal government’s expansion of the First Home Guarantee Scheme would radically improve market accessibility for new buyers.
When it was announced back in August, Prime Minister Anthony Albanese said the expansion was focused on “Getting more Australians into their own home quicker, while saving them money along the way.”
While the scheme now allows first-home buyers to purchase with deposits of five per cent, Mr Cooke said this could actually put buyers in a worse position financially.
“You could get help with the deposit, but you are borrowing more,” he said.
Your Future Strategy managing director Gareth Croy echoed this, saying the scheme was drawing first home buyers into “really large mortgages”.
“After that, there’s no more borrowing capacity,” he said.
“Once they’ve got their home, they’re unlikely to be able to start then reinvesting as well.”
Common properties attracting interest from first-home buyers include four-bedroom, two-bathroom houses in the outer west and inner west terraces.
Recent sales suggest these types of properties sell for in-and-around Sydney’s new median house price of $1.602m.
Mr Croy said the danger of the scheme was creating more demand than the market could handle.
“If there’s a shortage of property, then it’s invariably going to have an impact on the increase of property prices, as opposed to getting more people into properties,” he said.
Single Mum’s Big Property Move
This is why single mum Kate Heussler chose to buy before the scheme came into effect, aiming to avoid price hikes and a massive mortgage.
Ms Heussler said she realised her first home loan was going to get even larger if she did not buy when she did.
“Even though I could have been loaned more, I didn’t want to be a first-time homeowner dealing with a million-dollar loan,” she said.
“If I didn’t get something then, I was going to be priced out for another five years.”
Ms Heussler saved up for the best part of a decade while raising her daughter, before buying her one-bedroom unit in Sydney’s Northern Beaches.
She said, “Everything changed” when she started educating herself on budgeting and investing.
“Everything I earned, I prioritised into the bare essentials like rent and groceries and childcare,” she said.
“I rented a very tiny apartment that was affordable.
“So, I was happy to live below my means for a significant portion of 10 years, and that’s how I got to where I am today.”
Ms Heussler recalled it being a difficult journey getting into Sydney’s highly competitive property market.
“I had to completely park my ego and recognise that I can’t compete with a dual income,” she said.
“I can’t compete with parents who are supporting their kids or buying it on their behalf, and I can’t compete with generational wealth, which is what I saw at every open home.”
She said she had to “stick it out” when times got tough.
“After two months of just making offers and having them fall through simply because someone came in with a much higher offer, I was starting to feel a bit deflated,” she said.
“But soon I found somewhere in the right place at the right time, and here we are.”
Source: Finder.com.au.
About Your Future Strategy
Your Future Strategy is a multi-disciplinary financial services firm with experts across the financial landscape, including qualified professionals in financial planning, strategic accounting, lending, investments, estate planning and superannuation.
As financial strategists, they help create a well-designed pathway for people to tick off financial goals to give them choice in their future, whether that’s saving for children’s schooling and university, building a significant property portfolio, creating and protecting their legacy, or retiring early.