Latest news with #FirstHomeBuyers
News.com.au
29-07-2025
- Business
- News.com.au
Why the Aus property market is stacked against first time buyers
First home buyers are repeatedly being outbid for homes they can actually afford, with 20 per cent reporting they had missed out on at least three properties. And according to Finder, the strong demand compared to supply is a sure sign that the market is stacked against first time buyers. Finder's First Home Buyer Report 2025 – based on a survey of 1006 first home buyers in Australia – revealed a whopping 61 per cent had missed out on a property they were seriously considering. Being outbid by a competing buyer was the most common reason, affecting one in three (33%). Almost one in four (23%) didn't get the property they wanted because another buyer made an unconditional offer, agreeing to buy the property without contingencies. And a further 11 per cent lost their chance because they couldn't secure pre-approval from their lender in time, while 7 per cent missed out because a competitor offered a shorter settlement period. Finder's report shows almost half (42%) of first-time buyers who secured finance missed out on a property they were seriously considering two or more times, while one in five (20%) had this happen on at least 3 properties Finder personal finance expert Sarah Megginson said the majority of first home buyers were beaten to properties they wanted. 'Securing a first property can be a very frustrating and exhausting process that drags on for months on end, which is why it's so disappointing when you're pipped at the post,' Megginson said. 'When nearly two-thirds of buyers are missing out on properties they're serious about, it's a clear sign that the market is stacked against new entrants. 'With only a few houses to choose from at an affordable price, buyers are often competing for the same properties. 'As budgets get stretched, buyers resort to whatever it takes to secure their dream property.' The research also revealed that 60 per cent of first home buyers wanted to buy now following recent interest rate cuts. One in four buyers are looking interstate or in a different region, with 65 per cent saying they expect to spend 30 per cent or more of their income to meet mortgage repayments. Seventy per cent are buying or have bought with less than a 20 per cent deposit meaning they are subject to Lenders Mortgage Insurance (LMI). Nearly two in three (65%) first home buyers are already, or expect to be, in mortgage stress which is defined as spending 30 per cent or more of gross income on mortgage repayments. 'The Australian housing market is in a league of its own,' the report said. 'Residential property accounts for 64 per cent of household wealth, compared to a global average of less than 50 per cent and when adjusted for population, the value of Australian property is double that of the United States. 'Since the Global Financial Crisis (GFC) in 2008, Australian house prices have consistently outpaced both the United States and the UK.' Finder head of consumer research Graham Cooke said the dominant motivator for buying was no longer just the aspiration to own a home, but the fear of missing out (FOMO). 'FOMO, fuelled by rising prices and social pressure, has overtaken traditional financial planning for many buyers,' Cooke said. Forty-five per cent of buyers who purchased in the past year say they regret their decision, with 14 per cent of those surveyed reporting they had no savings left. And 26 per cent revealed they paid to much. 'This kind of financial risk-taking reflects not just ambition, but anxiety – the belief that if you don't buy now, you may never be able to,' Cooke said. Interestingly, 14 per cent of those surveyed in both NSW and Queensland said they were looking to buy outside of their home state. To help Australians have a better chance of cracking the property market, Finder is hosting a free, online First Home Buyer Masterclass. Participants will be guided through how to turbocharge their deposit, get approved for a loan easily and quickly, and get prepared for property ownership. Megginson said being prepared can make all the difference when the right property does come along. 'That's why we're hosting this free masterclass – to help buyers understand the process, avoid common pitfalls, and improve their chances of success,' she said. 'Our expert panel is going to share some of the steps you can take to have a competitive advantage over other buyers and hopefully, be in the category of first home buyers who get to sign a contract and secure their home.' The masterclass will be held online on August 5 at 12.30pm with spaces now open for enrolments.
ABC News
22-06-2025
- Business
- ABC News
Queensland treasurer promises targeted cost-of-living relief in first budget
Queensland Treasurer David Janetzki is promising cost-of-living relief for those who "need it most" as he prepares to hand down the LNP government's first budget. In an interview with the ABC, Mr Janetzki would not guarantee a return to surplus within the next four years and was also coy about how much he would cut debt. The treasurer will deliver the state budget on Tuesday — and has indicated he could unveil more cost-of-living support, as he commits to targeted relief measures. A raft of pre-election initiatives introduced by the former Labor government are set to end, including $1,000 energy bill rebates and 20 per cent vehicle rego discounts. Mr Janetzki said "vulnerable" households will still get power bill reductions. He also spruiked $30,000 concessions for first home buyers purchasing new builds as well as $200 vouchers for parents with kids playing sport. "We have a duty to support households that are under pressure, families that are under pressure, businesses that are under pressure," he said. "We're targeting cost-of-living relief at those who need it the most and I'll have more to say about that on Tuesday." In their last budget in office, Labor had projected deficits for 2024-25 and 2025-26, before forecasting surpluses for 2026-27 and 2027-28. But in the budget update handed down in January, the LNP government significantly revised those forecasts, with the budget plunged into the red for all four financial years. This included deficits of more than $9 billion in both 2026-27 and 2027-28, which the government blamed on its Labor predecessors. Mr Janetzki would not guarantee a return to surplus within the next four years, as he claimed he was left with a "serious challenge" to get the budget back in the black. "There are serious challenges that we face with the budget. We're up to it and I look forward to sharing more on Tuesday," he said. After Labor had initially projected total debt would reach $172 billion by 2027-28, the LNP government also significantly revised that figure to $218 billion in January. Mr Janetzki is vowing to reduce total debt below $218 billion, but won't say if the debt figure in Tuesday's budget will still have a two at the front. He said he was doing everything he could to maintain the state's credit rating. S&P Global currently puts Queensland's credit rating at AA+, although it revised its outlook in February from stable to negative. "The work of this budget has been taken so seriously because our rating matters," Mr Janetzki said. "And I want to make sure that we have prepared a budget and can share that budget with the ratings agencies that they see clearly that we have taken the challenges that Queensland faces seriously. "We know a downgrade means higher interest costs. The cost of borrowing increases." Mr Janetzki ruled out any asset sales or any cuts to services. He also reaffirmed the government's commitment of no new or increased taxes. In January, Shadow Treasurer Shannon Fentiman claimed the government had "juiced up" the budget figures in a way that could put the state's credit rating at risk.
