Latest news with #CateBakos
News.com.au
11 hours ago
- Business
- News.com.au
Why the Bank of Mum and Dad is now a necessity
Parental wealth is fast becoming the secret weapon of first-home buyers, with family help now the difference between getting a home loan approved or being locked out for good. With house prices and required incomes surging beyond what most young Australians can save alone, property insiders say the 'Bank of Mum and Dad' is no longer a bonus, it's a necessity. Canstar research director Sally Tindall said the divide between those with family backing and those without was widening at speed. 'First-home buyers today aren't just up against high prices, they're up against time,' Ms Tindall said. 'Those with family support can move quickly. Those without it are constantly playing catch-up.' Ms Tindall added that many parents were now treating housing help as an investment in their kids' future. 'For some families, it's not just a gift, it's a strategic decision,' she said. 'They want to give their children a head start, knowing how hard it is to build equity from scratch.' Prominent Melbourne buyers' advocate Cate Bakos said she had seen adult children move back in with parents to aggressively save, while others were leaning on their families for emotional resilience as much as money. 'There's often an unspoken pressure,' Ms Bakos said. 'Some buyers don't want to ask for help, but they feel like it's their only option.' 'We're working with families as a unit now — it's no longer just about the buyer.' Ms Bakos said in many cases, parents were attending inspections and auctions, acting as sounding boards and unofficial advisers. Zippy Financial principal broker Louisa Sanghera said one of the most common trends was partial deposits, where parents might match whatever their children could save. 'We see parents say, 'If you save $50,000, we'll match it', it becomes a partnership,' Ms Sanghera said. 'That kind of leverage can mean the difference between winning an auction or walking away.' Ms Sanghera added that buyers were often borrowing at the absolute edge of their serviceability range, so any reduction in upfront cost was hugely helpful. 'We're not just talking about first-home buyers in their 20s,' she said. 'Some clients are in their mid-30s or even 40s, and they're still needing help. 'That's how hard it's become to enter the market.'
News.com.au
3 days ago
- Business
- News.com.au
Simple reason Aussies refusing to downsize for city
Australians are clinging to their laundries, spare rooms and car spots — even if it means ditching city life — in a defiant rejection of the downsizing dream. New research from Compare the Market reveals just 18.8 per cent of Australians would sacrifice space to live closer to the CBD, while a staggering 71.3 per cent either won't downsize or have no desire to live in the city at all. But while most of the nation is holding onto space, property experts say buyers are increasingly flipping the script. Compare the Market's general manager of money Stephen Zeller said Australians were drawing clear lines around which home features they would and wouldn't compromise on — and it wasn't what you might expect. 'Knowing which home amenities you definitely want and which you're willing to compromise on can help you narrow down which properties are right for you,' Mr Zeller said. 'Using comparison tools can also help you find a competitive interest rate on offer.' Laundries topped the list of non-negotiables, with 50 per cent of Australians saying they would not give them up — followed by car park spaces, 38.9 per cent, garages, 34.7 per cent, and spare rooms, 30 per cent. Buyers were most willing to ditch pools, 57.9 per cent, garden sheds, 42.1 per cent, and backyards, 35.8 per cent, to get closer to the city. Melbourne based buyers advocate Cate Bakos said the national data came as a surprise, because her clients are increasingly choosing location over space. 'That actually surprised me — because I'm seeing the opposite,' Ms Bakos said. 'People are much more willing to give up space to be close to cafes, culture and lifestyle. 'They want to be where the action is.' Ms Bakos said many buyers had moved away from car ownership entirely, opting for public transport, ride-share services and car share schemes. 'They'd rather save that cost and use the money elsewhere,' she said. 'The focus has shifted to experiences, lifestyle and social connectivity.' But the buyers agent said one feature remains a deal-breaker for many buyers: 'Move-in readiness. Buyers are not interested in renovators right now,' Ms Bakos said. 'The builder shortage and renovation costs have turned people off. 'A turnkey home is gold.' Ms Bakos added that confidence was being driven by major infrastructure upgrades, particularly Melbourne's $15bn Metro Tunnel, set to reshape commuting when it opens later this year. 'It's the kind of change buyers will feel in their daily commute,' she said. 'It builds confidence and convenience.' 'The Suburban Rail Loop might be the long game, but right now, the Metro Tunnel is what people are excited about.' McGrath Wynnum-Manly principal Gaby McEwan said buyers, particularly in Brisbane were still chasing space, but not for land size alone. 'It's not necessarily about acreage. It's about a change in pace,' Ms McEwan said. 'They want a backyard, a garden, a safer community and access to the water.' Ms McEwan said a growing number of young families were selling up in Brisbane inner-city pockets like Newstead and West End to secure lifestyle homes in seaside suburbs such as Wynnum and Manly. 'They're not just trading sideways,' she said. 'In some cases, they're paying more for a smaller block, just to live near the water. 'The Esplanade used to be quiet. Now it's buzzing. People discovered it during lockdowns and never left.' The McGrath Wynnum-Manly principal said even basic homes are being snapped up by buyers keen to get into the suburb. 'We recently sold one for $925,000, it was full of asbestos and hadn't been touched in decades,' Ms McEwan said. 'But it was on a great street, and the buyers were happy to renovate just to get in.' Ms McEwan said a wave of locals who grew up in the area were now returning after years of inner-city living. 'They've seen the value of their units go up, and now they're either selling or holding and buying again here,' she said. 'It's a smart move, and once they're back, they never want to leave.' State-by-state: Who's least willing to compromise? Victorians were the most attached to their laundries, with 53.2 per cent unwilling to give them up. Queenslanders were more open to ditching the backyard, 38.5 per cent, and only 10.9 per cent were willing to lose a laundry. New South Wales came in close to the national average, but Sydneysiders showed slightly greater willingness to downsize for location. South Australians were most attached to having a garage, with 42.9 per cent unwilling to let it go.
News.com.au
23-05-2025
- Business
- News.com.au
How rate cut is supercharging Melbourne's late-autumn auction boom
Melbourne's auction market is set for a late autumn surge as more than 1100 home sellers who had timed their sale for the days after the Reserve Bank's interest rate decision chase a result. It's a jump of almost 300 from last weekend, with the owners who bet on a cut to add heat to their auctions hope to cash in on boosted confidence after a 0.25 per cent reduction in the cost of borrowing was announced on Tuesday. PropTrack figures show 1151 auctions are scheduled across the city this week are also up 3 per cent on the same time last year, and the number will surge to 1533 next week — a 25 per cent jump from 2024. Buyers will have the best odds in Reservoir where there will be 22 auctions, followed by Craigieburn, 21, Mount Waverley, 19, as well as Carnegie and Wollert, with 17 each. Prominent buyers' advocate Cate Bakos said lower interest rates were already prompting stronger pre-auction offers, as buyers stretched their budgets to get in before stock thins out over winter. 'There's already a shortage of listings coming through, and I expect demand will outstrip supply by June,' Ms Bakos said. Ray White Judd White director Dexter Prack said the cut had already supercharged competition in the southeast, with bidders 'coming out swinging' at midweek auctions and some vendors accepting offers days before planned weekend sales. 'Buyers who were sitting on their hands are jumping back in,' Mr Prack said. But Melbourne buyers advocate Simon Murphy said as competition rose first-home buyers were being pushed further out, with intensifying competition in fringe suburbs. 'If you're chasing value, now's the time to act, because by spring, you might be priced out,' Mr Murphy said. 'There are still good buys in areas like Craigieburn, Wollert and Rockbank. 'But the window's closing. If you wait until spring, you could be priced out.'
News.com.au
16-05-2025
- Business
- News.com.au
Melbourne families flood Frankston and Sunshine as Melbourne's sub-$1m homes rapidly disappear
Melbourne homes under $1m could be set for a mini-boom, with new data showing families are rushing to secure properties before competition explodes. Just 856 homes are set to go under the hammer this week, including fewer than 300 priced under $1m, but auction volumes will surge to 1270 next week and more than 1400 the week after — a 29 per cent rise on this time last year. PropTrack figures show Melbourne listings fell 13 per cent in April, driven by school holidays, long weekends and the federal election. But the pullback has left fewer homes on offer, especially in the family-friendly, sub-$1m price range. PropTrack senior economist Anne Flaherty said buyers chasing affordable homes were being squeezed into a shrinking pool. 'Demand is rising under $1m, but the number of suitable properties is falling,' Ms Flaherty said. 'And if we get a rate cut next week, that's only going to supercharge the competition.' She said family-sized homes — especially those with three or more bedrooms — were vanishing quickly. 'There's now a much higher concentration of buyers in that price bracket,' she said. Prominent buyers' advocate Cate Bakos said families were flooding into Frankston, Thomastown and Sunshine, chasing land, lifestyle and school zones. 'Places like Frankston won't stay under $1m for long,' Ms Bakos said. 'They're the last affordable pockets close to infrastructure, lifestyle and schools. And we're already seeing investor activity pick up again.' MR Advocacy director Madeleine Roberts said Frankston homes had jumped more than $200,000 since November, and demand was rising fast. 'You're seeing buyers who were looking in Cheltenham or Bentleigh now chasing homes in Frankston — because that's where the space is,' she said. 'But there's not enough homes for all of them. 'We're seeing 10, 15, even 20 families chasing the same property if it's well-priced and well located.' She said many families were shocked by how strict school zones had become. 'They assume they'll have more flexibility, but if a school's in demand, you need to be in-zone — there's no way around it.' Ms Flaherty said signs of a new wave of buyer urgency were already emerging. 'There's a definite sense of FOMO building,' she said. 'Melbourne's typical house price is now below Brisbane's, and only slightly above Perth's. 'Investors are taking notice — including those from interstate.' She also flagged the outer northeast as an area to watch. 'There are still a number of suburbs there with house prices under $1m, great road and train links — and once the North East Link opens, connectivity will only improve.' Suburbs with the most auctions this week include Craigieburn, with 16, Glen Waverley, 15, and Reservoir, 14.
