We're in the market to buy a house, but there's one huge disadvantage that is making it almost impossible
Ashleigh Pullin, 28, and her partner James Mashiter, 37, have put in four offers for homes in Melbourne since April.
The couple were pre-approved for a $760,000 home loan with a five per cent deposit under the federal government's First Home Guarantee Scheme after years of saving.
The First Home Guarantee Scheme allows eligible Australians to use just a five per cent deposit and avoid paying lenders' mortgage insurance.
Under the scheme, they are subject to an $800,000 property price cap, which the couple say is making it difficult for them to compete with older buyers.
'We've put in four offers in total since that time and all of them have been unsuccessful,' Ms Pullin told Yahoo News.
'You get very disappointed because you see the house you put an offer in then goes for another $30,000, $40,000 over, and you're not even competitive.'
The couple revealed they, and many other Millennial buyers, are feeling the pressure to enter the market, anticipating further interest rate cuts.
The Reserve Bank of Australia (RBA) on Tuesday voted to keep interest rates steady at 3.85 per cent, after a series of rate cuts renewed interest in the property market.
Mr Mashiter said the market was reacting quickly.
'We were looking at places that were four-bedroom, two-bathroom and two garages and that was comfortable within what we could afford, it was going for $760,000 to $790,000,' he said.
Now, the couple are struggling to find a home with three bedrooms and two bathrooms inviting offers under $800,000.
They have been forced to pivot away from their dream area and are now searching for homes toward Yarra and Dandenong, further away from the city.
PropTrack's latest Home Price Index said the values of homes had climbed by 0.3 per cent over June. It took Melbourne's annual property growth to one per cent.
The median home value is now $10,600 more than it was last year, at $818,000.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
WiseTech Global taps insider Zubin Appoo as new CEO, succeeding founder Richard White
July 28 (Reuters) - Australian logistics software maker WiseTech Global ( opens new tab on Monday said its chief of staff, Zubin Appoo, will take on the role of CEO effective immediately, succeeding billionaire founder Richard White. White, the company's long-serving chief executive, put down his papers last October, following a flurry of controversies, including media reports of allegations about his personal life. White's exit comes amid a broader crisis marked by boardroom exodus, corporate governance concerns, and share volatility that led to Australia's largest pension fund, AustralianSuper, selling its stake in WiseTech Global. Appoo previously spent 14 years at WiseTech from 2004 to 2018 as head of innovation and technology, and was part of the team that developed WiseTech's flagship CargoWise platform. He returned to the company earlier this year as the deputy chief innovation officer, reporting directly to White. "Zubin Appoo's appointment is a much-needed stabilising force" for WiseTech, said Josh Gilbert, market analyst with eToro. "His elevation to CEO allows the business to draw a line under recent boardroom drama and provides a clearer leadership structure moving forward." Shares of the company ended 0.3% higher at A$120.5. Andrew Cartledge, who served as the logistics tech firm's finance chief for nearly a decade, took over the interim CEO duties in October 2024. The company reiterated that Cartledge will retire at the end of the year as previously stated, but did not specify what role he will take on till his retirement. Last year in October, the Australian Financial Review and other media outlets reported that a woman who had had a sexual relationship with White made numerous allegations against him in late 2020, including claims of inappropriate behaviour. Initial findings of an external governance review started by the company largely cleared White of wrongdoing, though it acknowledged that his management style might be perceived by some employees as intimidating. The billionaire made a surprise return to the firm's top brass in February, appointed as its executive chair.
The Guardian
2 hours ago
- The Guardian
Australia won't receive Aukus nuclear submarines unless US doubles shipbuilding, admiral warns
The US cannot sell any Virginia-class nuclear submarines to Australia without doubling its production rate, because it is making too few for its own defence, the navy's nominee for chief of operations has told Congress. There are 'no magic beans' to boosting the US's sclerotic shipbuilding capacity, Admiral Daryl Caudle said in frank evidence before a Senate committee. The US's submarine fleet numbers are a quarter below their target, US government figures show, and the country is producing boats at just over half the rate it needs to service its own defence requirements. Testifying before the Senate Committee on Armed Services as part of his confirmation process to serve as the next chief of naval operations, Caudle lauded Royal Australian Navy sailors as 'incredible submariners', but said the US would not be able to sell them any boats – as committed under the Aukus pact – without a '100% improvement' on shipbuilding rates. The US Navy estimates it needs to be building Virginia-class submarines at a rate of 2.00 a year to meet its own defence requirements, and about 2.33 to have enough boats to sell any to Australia. It is currently building Virginia-class submarines at a rate of about 1.13 a year, senior admirals say. 'Australia's ability to conduct undersea warfare is not in question,' Caudle said, 'but as you know the delivery pace is not what it needs to be to make good on the pillar one of the Aukus agreement which is currently under review by our defence department'. Caudle said efficiency gains or marginal improvements would not be sufficient to 'make good on the actual pact that we made with the UK and Australia, which is … around 2.2 to 2.3 Virginia-class submarines per year'. 'That is going to require a transformational improvement; not a 10% improvement, not a 20% improvement but a 100% improvement,' he said. Sign up: AU Breaking News email Under pillar one of the Aukus agreement, Australia is scheduled to buy between three and five Virginia-class nuclear-powered submarines from the US, starting in 2032. The UK will build the first Aukus-class submarine for its navy by 'the late 2030s'. The first Australian-built Aukus boat will be in the water 'in the early 2040s'. Aukus is forecast to cost Australia up to $368bn over 30 years. US goodwill towards Australia, or the import of the US-alliance, would be irrelevant to any decision to sell submarines: Aukus legislation prohibits the US selling Australia any submarine if that would weaken US naval strength. Australia has already paid $1.6bn out of an expected total of $4.7bn (US$3bn) to help the US boost its flagging shipbuilding industry. But the US itself has been pouring money into its shipbuilding yards, without noticeable effect. A joint statement on 'the state of nuclear shipbuilding' issued by three rear admirals in April noted that while Congress had committed an additional US$5.7bn to lift wages and shipyard productivity, 'we have not observed the needed and expected ramp-up in Columbia-class and Virginia-class submarine production rates necessary'. Caudle, himself a career submariner, said the US would need 'creativity, ingenuity, and some outsourcing improvements' if it were to meet its shipbuilding demands and produce 2.3 Virginia-class vessels a year. 'There are no magic beans to that,' he told the Senate hearing. 'There's nothing that's just going to make that happen. So the solution space has got to open up.' The former prime minister Malcolm Turnbull, who first reported on Caudle's testimony to the Senate, told the Guardian that there was 'no shortage of goodwill towards Australia' from the US in relation to Aukus, but the realities of a shortfall of submarines meant there was a 'very, very high' probability that Virginia-class submarines would never arrive under Australian control. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Turnbull said the language coming from US naval experts was 'framing expectations realistically', essentially saying that, without dramatic reform, the US could not sell any of its Virginia-class boats. With the Collins class nearing the end of their service lives, and the Aukus submarine design and build facing delays in the UK, Australia could be left without any submarine capability for a decade, potentially two, Turnbull argued. 'The risk of us not getting any Virginia-class submarines is – objectively – very, very high. The real question is why is the government not acknowledging that … and why is there no plan B? What are they doing to acquire alternative capabilities in the event of the Virginias not arriving?' Turnbull – who, as prime minister, had signed the diesel-electric submarine deal with French giant Naval that was unilaterally abandoned in favour of the Aukus agreement in 2021 – argued the Australian government, parliament and media had failed to properly interrogate the Aukus deal. 'When you compare the candour and the detail of the disclosure that the US Congress gets from the Department of the Navy, and the fluff we get here, it's a disgrace. Our parliament has the most at stake, but is the least curious, and the least informed. On Friday, the defence minister, Richard Marles, told reporters in Sydney 'work on Aukus continues apace'. 'We continue to work very closely … with the United States in progressing the optimal pathway to Australia acquiring a nuclear-powered submarine capability,' he said. 'In respect of the production and maintenance schedule in the United States, we continue to make our financial contributions to that industrial base.' Marles cited the $1.6bn paid to the US to boost its shipbuilding industry already this year, with further payments to come, and said that 120 Australian tradespeople were currently working on sustaining Virginia-class submarines in Pearl Harbor. 'All of that work continues and we are really confident that the production rates will be raised in America, which is very much part of the ambition of Aukus.' The Guardian put a series of questions to Marles's office about Caudle's Senate testimony.
Reuters
2 hours ago
- Reuters
UN tells Australia, Turkey to end COP31 hosting standoff
SYDNEY, July 28 (Reuters) - The United Nations climate chief on Monday urged Australia and Turkey to resolve their long-running tussle over who will host next year's COP31 summit, calling the delay unhelpful and unnecessary. Australia and Turkey submitted bids to host the high-profile conference in 2022 and both countries have refused to concede to the other, opens new tab ever since. Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, which oversees COP summits, said the deadlock was undermining preparations. 'A decision needs to be made very quickly,' he said at a Smart Energy Council event in Sydney. 'The two proponents need to come together and between themselves and within the group to make that decision. The delay in making that decision is unhelpful to the process.' The annual UN talks rotate through five regional groups. COP31's host must be unanimously agreed upon by the 28 members of the Western Europe and Others Group (WEOG) bloc. The UN had set a deadline of June for the group to reach consensus. Australia is seeking to co-host next year's summit with the Pacific to showcase its renewable energy transition. It had hoped to secure the bid, which has majority backing among WEOG members, at COP29 in Azerbaijan. But Turkey has rebuffed calls to drop out of the race, and instead doubled down on its efforts during interim talks in Bonn last month. Turkey argues its Mediterranean location would help reduce emissions from flights bringing delegates to the conference, and has pointed out its smaller oil and gas industry compared to Australia. Stiell said the deadlock was now affecting the planning of the COP process, involving thousands of delegates from 200 member countries. 'In negotiations that are as complex as they are, that lack of clarity creates tensions that are completely unnecessary at this stage,' he said. Asked for comment, the office of Australian Climate Change Minister Chris Bowen referred to an interview where he said Australia's bid had the backing of 23 out of 28 WEOG members. Australia had also approached Turkey multiple times to find a 'win-win' solution, he said. 'We've got the votes. We could have all the votes in the world. If Turkey is not going to withdraw, that's still a challenge,' Bowen told The Conversation Politics Podcast on Thursday. At the same event, Stiell also called on Australia to set an ambitious 2035 emissions target and accelerate its clean energy transition. Australia's national climate plan, due in September, would be a 'defining moment' that could send a message that 'this country is open for clean investment, trade, and long-term partnerships', he said.
