Yet another young Australian has shared the struggle of buying a home, complaining the nation’s housing crisis is ‘getting ridiculous’.
Tijana Jovic, from Western Australia, was up against 30 families at an inspection for a ‘small’ home that ‘wouldn’t even fit half’ of her clothes.
‘I can guarantee it will go for at least $100k over what it was put up on the market,’ she said in a TikTok rant on Monday.
‘I also just looked on realestate.com and offers are closing tomorrow at 12pm. It’s meant to be two weeks’ time.
‘So people are already putting offers in after 15 minutes of being there.’
Ms Jovic said she saw at least five groups ask the real estate agent how they could place an offer on the home.
The young Aussie said she initially thought buying a house would be ‘fun and exciting’ but that it was in fact the opposite.
Tijana Jovic, from Western Australia, said she was joined by at least 30 families at an inspection for a ‘small’ home that ‘wouldn’t even fit half’ of her wardrobe
Dozens of Aussies in the same boat were quick to offer Ms Jovic their advice.
‘Better put in an offer as high as you can. In five years you won’t care that you thought you paid over. Perth & Adelaide will soon be like Melbs & Syd,’ one said.
MEDIAN PROPERTY PRICES IN AUSTRALIA’s CAPITAL CITIES:
Source: Property Update
‘I wouldn’t be buying now. People keep saying it won’t but the economy is going to tank and have a recession by the end of 2024,’ a second wrote.
A third shared: ‘You’re in WA and complaining? Wait till you see Sydney prices.’
Others shared how they had been able to purchase their own homes.
‘Picked up a house near Mindarie for $420k, 600m2,’ one said.
‘We used a buyer’s agent for this reason. We got to put in an (unconditional) offer before the public even got to see the place (Syd eastern suburbs),’ a second wrote.
‘I just got my place with the first offer I put on $20k above asking price but still within CoreLogic price guide,’ a third commented.
‘Just bought a house in Perth but gosh it was a struggle going up against all the investors over east. Ended up having to go well over asking,’ a fourth said.
Ms Jovic’s post comes after a young professional posed on social media that despite earning a good salary they would never buy a home because their family had never owned property.
‘I am a professional in my 30s, living in Sydney,’ they wrote on Reddit last week.
‘My biggest mistake is that my parents never owned property and were never wealthy, so as a result, they’ve never been able to help me out.
Ms Jovic (pictured) said she had initially thought the process of buying a house would be ‘fun and exciting’ but that it was actually the opposite
‘I don’t begrudge them because I lived a happy and healthy childhood, but now I see all my friends and colleagues buying houses in middle class suburbs, and I read a statistic that 60 per cent of Australians are getting help to purchase property.
‘It feels like increasingly birth is the biggest determinate on if you’ll succeed in this country.’
Their rant came in response to a post by a young electrician who was struggling to save for a house and was contemplating giving up.
‘I’m a 31-year-old sparky, and I consider myself a pretty simple man. I want to just have a family home, raise some rugrats, work till I’m 60 and hopefully see through a retirement,’ he said.
‘I have no vices, don’t drink, don’t smoke and don’t gamble and don’t have any expensive hobbies.
‘Despite all this, the basics of life have become so expensive to the point that I don’t think I’ll genuinely ever own a home.
‘The clock is ticking, and I’ll never be able to have kids because of a lack of financial security due to housing.’
The electrician said he felt robbed of the opportunity to buy a home and raise kids.
An increasing number of young Aussies believe they will never own a home, some because their parents have never owned property (pictured, a home for sale in Sydney)
‘It feels like the only way to make it in my generation is if you have wealthy parents or earn money that most of us will never see,’ he continued.
‘How did we as a society make it so essential workers can’t afford the simple things in life like housing?
‘Not all of us can be lawyers or doctors. Society couldn’t function that way! And I’m sure we need sparkies around.
‘It certainly feels like a lucky country, for some but not all of us.’
It comes as data reveals that national property prices are expected to increase by up to 5 per cent in 2023, having already jumped 2 per cent since the start of the year.
‘The post-pandemic recovery in immigration is expected to add significant pressure to housing demand,’ explained KPMG economist Brendan Rynne said.
‘Robust population growth and limited housing supply are poised to exert more pressure on the rental market.’
The strongest growth is expected to be in Perth with growth of between 4 and 7 per cent, according to a report by REA Group.
Melbourne prices are predicted to grow at a slower rate of up to 2 per cent, although they might record a small dip by the end of the year.
Sydney and Adelaide property prices are forecast to increase by between 3 and 6 per cent, while Brisbane is heading for between 1 and 4 per cent growth.
The author of the REA Group report, Cameron Kusher, said a limited supply of properties for sale was contributing to buyer competition and price growth.
It comes as data reveals that national property prices are expected to increase by up to 5 per cent in 2023, having already jumped 2 per cent since the start of the year
‘We saw price increases despite rising interest rates and reduced borrowing capacities and anticipate moderate price increases to continue over the coming months,’ he said.
Kusher said the outlook for 2024 was less clear with a large cohort of fixed-rate borrowers’ mortgages set to expire from current interest rates of around 2 per cent and reset to around 6 per cent.
‘Interest rate changes act with a lag and, as such, the possible impact of higher repayments on these borrowers won’t be seen until 2024,’ he said.
‘At this stage, we are forecasting modest price growth in 2024.’
Meanwhile, rental vacancy rates remain tight in Brisbane Melbourne and Sydney, according to new SQM Research data.
The national vacancy rate slipped to 1.1 per cent, with Sydney falling back to 1.3 per cent from 1.4 per cent in August.
Asking rents also ticked higher to reflect fierce competition for housing, moving 1.3 per cent higher in October.