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News.com.au
a day ago
- 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.
Daily Record
7 days ago
- General
- Daily Record
Gardeners warned of 'ticking time bomb' and told to act now
Householder should be aware of the issue before it's too late. Householders are being warned of a 'ticking time bomb' which may be growing in your garden. According to experts at PropertyMarket, if you have Japanese Knotweed near your home, you should act now. The pesky plant has a deceivingly harmless appearance, but if left undetected, it can have costly impacts on your property. During the summer months, the East Asian plant grows rapidly, usually by around 10cm per day, causing some serious damage along the way. It is easy to mistake this plant as a pleasant addition to your garden, but it is important to address its presence as a priority. As well as growing rapidly, it can reach heights of around three metres and burrows deep underground. Japanese Knotweed can force its way through expansion joints in concrete, cavity walls, weaknesses in the damaged mortar between paving slabs or bricks, and it can also hinder drains and sewers. If left unaddressed, it can also potentially cause substantial structural damage, especially to properties that are more vulnerable, such as character homes. The plant, described by the PropertyMarket experts as a "ticking time bomb", reportedly causes over £170million in damages to properties each year. It can be helpful to seek expert advice to help plan an effective treatment regime for Japanese Knotweed and to help minimise any potential return. If you haven't heard about Japanese Knotweed or don't know what it looks like, then it is very easy to miss it in your garden. "This plant has various growth stages throughout the year, which can make it hard to identify. In the spring, it will have red or purple asparagus-type shoots, quickly transforming into green or bamboo-like stems, but then in the early summer, it is usually fully grown at three metres high. By this time of year, the plant flowers will produce clusters of spiky stems in tiny creamy-white flowers. The leaves are luscious green and show their unique flat, shovel, or heart-shaped appearance. During the late autumn and winter, the leaves drop, and the canes become dark brown. The Japanese knotweed then remains dormant during the winter months before coming back to life in spring. The correct treatment will depend on a variety of factors. However, there are normally two methods to beat the issue: herbicide treatment or physical removal through excavation. A severe Japanese Knotweed infestation can make your home significantly harder to sell and can lower the value of your property. Buyers may look to renegotiate the initial offer for any property, if they know they will need to spend time and money eradicating any of the plant. Homewares deal of the week Looking to beat the heat as temperatures continue to rise? Then look no further than Dunelm's White Rechargeable USB Desk Fan that has an almost perfect five star rating for its small, yet mighty, design that means it works "even on the lowest setting." Easy to connect via a USB cable that can be connected to laptops and computers, this desk fan is perfect for those who find themselves working from home on these sweaty, humid summer days. However, it doesn't need to remain plugged-in, as the rechargeable element and compact six-inch design means it can be taken anywhere, even placed on a bedside table overnight on summer nights thanks to its "quiet" operation. It's finished with four speed settings to choose from and an adjustable angle that can help direct the cool breeze where it is needed, unlike other models that can sometimes be stuck in one place. As for Dunelm's own mini desk fan, it has received an impressive 4.8 rating from impressed shoppers who say that, despite its size, it is "surprisingly powerful" and "a literal life-saver" during this kind of weather. One five-star review read: "Fantastic fan, surprisingly powerful, quiet, lasts for quite a long time when charged, very hard to find a decent small rechargeable fan but this is it, will be buying more!" Beat the heat with Dunelm's White Rechargeable USB Desk Fan that costs just £25. However, most UK lenders will still potentially lend to consumers if they can feel assured that the problem can be treated effectively. Michael Holden, a former NAEA Propertymark president, said: 'When buying a home, the key issue is to make sure that you ask the vendor and the estate agent as to whether the property has had any present or historic issues with Japanese Knotweed or invasive plant species generally. "Bamboo, for example is now becoming more of a concern. Where there are potential issues, it is advisable that a specialist survey is undertaken to identify invasive plants in the property's garden and any other matters that would require further investigation.'
News.com.au
15-07-2025
- Business
- News.com.au
‘Back to square one': Problem with First Home Guarantee Scheme
Alexandra Prenc-Sadler moved back in with her parents and out of Sydney's eastern suburbs to save up to buy a home, and she's already faced a defeating setback. The 31-year-old is planning to take advantage of the First Home Guarantee Scheme, which allows first home buyers to buy with a deposit of as little as 5 per cent. She has also given up on the Sydney market, where the median apartment price is now over a staggering $1 million, and is planning to relocate to Wollongong to buy. Ms Prenc-Sadler, who works as a fundraising specialist for the Flying Doctors, has been actively looking for property, but she's already hit a significant snag that feels unfair. 'I am looking to buy with the five per cent deposit scheme, which is directly linked to your tax returns,' she told To qualify for the scheme, Ms Prenc-Sadler needs to show that she is earning at or below the $125,000 income cap. She also needs to produce her most recent notice of assessment (NOA), which is a statement issued by the Australian Taxation Office (ATO) that explains how your tax assessment is calculated. 'I was told I can't put through my tax return because of certain shares that I have. The estimate for when those statements would come through wasn't until September,' she said. Ms Prenc-Sadler is crushed; she's worried that rates will continue to trend down, properties will surge and, by the time she can get her notice and qualify for the scheme, she won't be able to afford anything. 'Initially, I was excited about the scheme because it meant, as a solo first homebuyer, I finally had a chance at entering the property market, and you get your hopes up because you think it is possible,' she said. 'Then you hit this roadblock because of the tax, and you miss out on the property you wanted because of it, and that is disheartening.' She feels like she's 'back to square one' and even before this news she already felt like she was 'struggling' to get into the property market. 'I was born and raised in Sydney but can't afford there,' she said. 'I'm a solo buyer and I can't afford a house. I'm looking at units because that is going to be cheaper, but then you get the strata bills and fees, and strata alone is what my rent used to be.' She is also beyond frustrated with people telling her to spend an extra $100,000 and get something bigger. 'I need to service this loan by myself,' she said. Ultimately, Ms Prenc-Sadler will have to wait until she can get her tax return done before she can buy. She's worked hard to save $40,000 but that isn't more than a 5 per cent deposit, even for a small place in a regional area. 'If I had to go in at 20 per cent, there was no-way I could do it by myself. When you save, you're saving, but the property market is going up,' she said. 'Your saving rate can't keep up with the property rate. It is a vicious cycle.' Accountant Coco Hou said that first home buyers really need to complete their taxes before trying to take advantage of the scheme. 'To qualify for the First Home Guarantee Scheme, buyers must provide their latest Notice of Assessment from the ATO to confirm their income is below the threshold. $125,000 for singles, $200,000 for couples' she told 'While lenders can begin processing applications from July 1, they cannot finalise the guarantee until the tax return has been lodged and assessed.' Ms Hou said it can leave people stuck in a 'timing trap' where they can't buy even though they're ready to. 'Many buyers find a property in July or August, only to realise they can't complete their application until they receive the ATO paperwork,' she said. 'Lenders might progress the application to pre-approval, but the guarantee itself remains on hold until documentation is complete. 'This creates a conflict between securing the property and accessing the scheme, particularly for buyers trying to enter the market early in the financial year.' The accountant said it is forcing buyers to make tough and quick choices in an already hard market. 'Buyers are often forced to make a choice, either go ahead without the scheme and come up with a larger deposit or pay Lenders Mortgage Insurance, or wait for the tax return to process and risk losing the property,' she said. 'Some miss out entirely, either because the property goes off the market or because they can't afford to proceed without the support of the scheme.' Ultimately, the tax stipulation can end up 'disadvantaging buyers who are proactive and often in the lower to middle-income bracket' who rely on the scheme the most, Ms Hou said. Craig McDonald, director of CBM Mortgages, told that he is dealing with a lot of clients at the moment who want to use the scheme but can't until they finalise their tax returns. 'It is a bit catch-22,' he said. Mr McDonald said that, for some people, doing their tax return isn't simple; they might be waiting on shares, or be self-employed and waiting on invoices to come. The regulations around the scheme mean that once a new financial year starts, people need to provide their latest notice of assessments, and therefore, it can hold buyers up. 'I've got a client who lodged their tax return as soon as they could. Now they're waiting on their notice of assessment to arrive and that can take over 10 days,' he said. It can leave first home buyers waiting around and feeling fretful because everyone is keen to buy. 'People want to jump because they see property prices going up. They want to get in sooner rather later,' he said. 'It is that fear of missing out.' Mr McDonald argued that the scheme needs more 'leeway' because it is currently causing undue inconvenience. 'The scheme helps many first home buyers enter the property market without having to pay the mortgage insurance, but the process could be improved. 'An option could be to allow clients to use the previous year's notice of assessment up until October.'
Yahoo
14-07-2025
- Business
- Yahoo
Shard flats left empty after Reeves's non-dom tax raid
Luxury flats at the top of The Shard have been left empty after Rachel Reeves's non-dom tax raid drove away wealthy buyers, the property's Qatari backers say. Real Estate Management (Rem), which is owned by the State of Qatar, said that it was 'very disappointed' with lack of progress made on letting out 10 luxury flats on the 72-storey skyscraper's upper levels, which are priced at between £30m and £50m each. Rem said Ms Reeves's tax changes for wealthy individuals was 'driving many such investors away' from Britain and hammering demand for ultra-expensive property. 'The long-heralded change in UK tax rules applied to overseas residents, which were accelerated by the current UK administration to apply from April 2025, [has] had the feared impact of driving many such investors away from the UK to escape double taxation of their worldwide income,' it said in accounts. 'This group of wealthy overseas investors has been the core constituency for super-prime lettings in the UK.' Ms Reeves abolished the non-dom status in April this year, while also bringing in sweeping inheritance tax changes. Those changes have been blamed for driving some of Britain's wealthiest people away from the country. The flats, on floors 53 to 65 of The Shard, were thought to have been priced between £30m and £50m after the skyscraper opened in 2012. They have been empty ever since, amid speculation that Qatar's royal family kept the flats for their own use while visiting London. Rem is an investment adviser tasked with letting out the flats. The properties are owned by another Qatar-backed entity, LBQ Four. The flats were made available for occupation in late 2023 after undergoing construction works, but despite 'every effort' to let them their availability coincided with a 'severe contraction' in the ultra-prime property market, Rem said. Rem's portfolio includes the Shard Quarter, The News Building and Park House on Oxford Street. It also owns The Shard's viewing gallery, which has reported 'difficult trading'. Qatari Diar, the property division of the state's sovereign wealth fund, bought 80pc of the skyscraper in 2008 after the project ran into financial difficulties. It later increased its stake to 95pc, with developer Sellar Property Group owning the remainder. The difficulties at The Shard capped off a difficult period for Rem, with pre-tax profit falling from £8.1m to £7.5m in the year ending December 2024. Rem also said it was struggling with recruiting and keeping skilled managerial and building staff, as well as the workforces of business partners contracted to undertake services across its property portfolio. Wars in Ukraine and the Middle East, Donald Trump's tariffs and falling commercial property values had created a 'brew of uncertainty, investor hesitancy and a lack of stability', it said. The Treasury and Rem have both been contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
14-07-2025
- Business
- Telegraph
Shard flats left empty after Reeves's non-dom tax raid
Luxury flats at the top of The Shard have been left empty after Rachel Reeves's non-dom tax raid drove away wealthy buyers, the property's Qatari backers say. Real Estate Management (Rem), which is owned by the State of Qatar, said that it was 'very disappointed' with lack of progress made on letting out 10 luxury flats on the 72-storey skyscraper's upper levels, which are priced at between £30m and £50m each. Rem said Ms Reeves's tax changes for wealthy individuals was 'driving many such investors away' from Britain and hammering demand for ultra-expensive property. 'The long-heralded change in UK tax rules applied to overseas residents, which were accelerated by the current UK administration to apply from April 2025, [has] had the feared impact of driving many such investors away from the UK to escape double taxation of their worldwide income,' it said in accounts. 'This group of wealthy overseas investors has been the core constituency for super-prime lettings in the UK.' Ms Reeves abolished the non-dom status in April this year, while also bringing in sweeping inheritance tax changes. Those changes have been blamed for driving some of Britain's wealthiest people away from the country. The flats, on floors 53 to 65 of The Shard, were thought to have been priced between £30m and £50m after the skyscraper opened in 2012. They have been empty ever since, amid speculation that Qatar's royal family kept the flats for their own use while visiting London. Rem is an investment adviser tasked with letting out the flats. The properties are owned by another Qatar-backed entity, LBQ Four. The flats were made available for occupation in late 2023 after undergoing construction works, but despite 'every effort' to let them their availability coincided with a 'severe contraction' in the ultra-prime property market, Rem said. Rem's portfolio includes the Shard Quarter, The News Building and Park House on Oxford Street. It also owns The Shard's viewing gallery, which has reported 'difficult trading'. Qatari Diar, the property division of the state's sovereign wealth fund, bought 80pc of the skyscraper in 2008 after the project ran into financial difficulties. It later increased its stake to 95pc, with developer Sellar Property Group owning the remainder. The difficulties at The Shard capped off a difficult period for Rem, with pre-tax profit falling from £8.1m to £7.5m in the year ending December 2024. Rem also said it was struggling with recruiting and keeping skilled managerial and building staff, as well as the workforces of business partners contracted to undertake services across its property portfolio. Wars in Ukraine and the Middle East, Donald Trump's tariffs and falling commercial property values had created a 'brew of uncertainty, investor hesitancy and a lack of stability', it said.
