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.
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Daily Mail
41 minutes ago
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