Latest news with #firsthomebuyers
News.com.au
3 days ago
- Business
- News.com.au
Property mogul's shock $200k Costco-style Aus unit discounts
A savvy Aussie property richlister has shared how he's slashed unit purchase prices up to $200,000 less than bank valuations – opening up for everyday Aussies to cash in. The Costco-style bulk buying discount is revolutionising the housing investment market for Aussie buyers able to tap in, helping pool together a total buying price from as many as 10 people for unit buildings. 'Rotten egg' mystery grips coast, and it's not sewers Millennial homebuyer Eddie Dilleen, who have over 100 properties of his own, said he started making the offer to clients after finding his own buying power restricted. 'When entire existing complexes of townhouses, villas and unit blocks need to be sold in one line (one transaction) and I can't personally buy them all I bring clients into the deals.' 'I've been doing bulk buys for a while now over 4-plus years but lately it's been a lot more frequent,' he said. 'I got the idea when there was a strata titled block of 10 units. I personally wanted to buy the entire block but at the time I couldn't find a way to make the deal happen as I was buying too many other properties and my cash was tied up.' 'So I thought, wait a minute, these are individually titled. What if I brought other buyers into this deal and we all win together and make instant equity gains?' First home buyers and investors have been among those taking part in the deals, including a St Kilda bulk purchase in Melbourne and a Summer Hill bulk purchase in Sydney where each unit was bought for $200,000-plus less than bank valuation, he said. 'Two bedroom, one bath, one car units (Summer Hill), individually we got for $765k a piece and they were bank valued at $1m-plus prior to purchase. Comparable sales show sales between $920-$1.1m.' A Matraville bulk purchase in Sydney also saw each property come in $200,000 under bank value, he said. 'Two bedroom, two bath, one car unit individually for $677k a piece and they were bank valued at over $900k prior to purchase. Comparable sales show sales between $820-$1.1m.' In Queensland, a Zillmere Brisbane deal saw each property secured for $110,000-plus under bank value, he said. 'Two bedroom, one bath, one car unit individually we got for $422.5k a piece and they were bank valued at over $550k prior to purchase. Comparable sales show sales between $500-550k.' Govt pays $3.3m for unliveable derelict house Mr Dilleen said the method has seen buyers land discounts of up to 30 per cent on what banks value the property at, an incredible saving that has seen the initiative develop a large waiting list. 'We're absolutely overrun with clients who want to be a part of the bulk transaction discount method,' he said, adding 'where there was roughly 10 properties in one group buy, we often had 50-plus people want one of those so it was 5 to 1 ratio.' He believes the basic idea of 'buy in bulk and get a discount made it easy to digest'. 'Most of these deals have to settle simultaneously at the same time,' he said. 'It adds a level of complexity to the transaction as we have to ensure all buyers are able to settle without delay.' 'It requires more organisational work, and yes I'm on stand by myself – if buyers aren't able to settle then I personally have to be able to take over the purchase myself.' 'I also have to usually front up 5 per cent of the entire purchase price, for example the Summer Hill unit block was $11m total, and on the day of sale I had to front the 5 per cent $550k to secure the sale.' Mr Dilleen said the buyers agency clients pay his firm a fee of circa $25k for the service. 'Most have an immediate $200k instant equity within the deal, based of individual valuations,' he said. 'For example the $677k deal, 5 per cent deposit, stamp duty, buyers agency fee comes to less than $90k but they received $200k equity in return, essentially more than doubling their return on capital instantly'. His tips for anyone looking to get into such deals was to always be ready and get on waiting lists. Buyers need a 'minimum of about $100k savings or available equity', Mr Dilleen said. 'This strategy is extremely niche and people can't do this alone as it requires having unconditional buyers ready and the know how of how to legally structure the deal.'
Yahoo
24-07-2025
- Business
- Yahoo
Bank removes ‘roadblock' for homebuyers
National Australia Bank has become the latest lender to ignore some Higher Education Loan Program debt when assessing new home loans. From July 31, NAB says if someone owes $20,000 or less in student debt, it won't affect how much they can borrow should they take out a new loan with the big four bank. This will help lift the borrowing capacity of a potential borrower, as banks consider income, liabilities and outstandings when calculating how much they will give a potential borrower. NAB executive for home ownership Matt Dawson said the change would make a real difference for first-home buyers especially. 'For too long HELP debt has been a roadblock for many Australians looking to buy a home,' Mr Dawson said. 'NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.' The NAB move is in line with the Commonwealth Bank, which in April said it would exclude HELP debt from home loan serviceability calculations on the basis the applicant could pay off their debt in the next 12 months. CBA also said it was piloting plans for those who could pay off HELP loans over the next one to five years. In February, student debt came into the spotlight when Treasurer Jim Chalmers told the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority (APRA) to update their guidance on how banks should treat student debts. In June, APRA said the changes would come into effect from September 30 2025. While NAB welcomed the move by the regulator to increase buying capacity for homebuyers by clarifying the treatment of HELP debt, Mr Dawson said housing supply remained the most significant challenge. 'It is critical to address both demand and supply-side measures together to help more Australians buy a home. There's no simple fix, solving Australia's housing challenges will take collaboration across the board.' NAB's move comes after the Albanese government announced changes to HELP debt on Wednesday. In its first Bill since returning to office, the government plans to slash 20 per cent off three million graduates' HELP debt. This is the equivalent of $16bn in total relief, according to the government. The move targets HELP debt, VET loans and apprenticeship loans. Calculations released by the government show $5520 would be wiped off the average HELP debt of $27,600 if the legislation passes. The changes would also raise the minimum threshold for student loans to be repaid from $54,000 to $67,000.
News.com.au
24-07-2025
- Business
- News.com.au
NAB removes HECS debt hurdle for mortgage seekers
National Australia Bank has become the latest lender to ignore some Higher Education Loan Program debt when assessing new home loans. From July 31, NAB says if someone owes $20,000 or less in student debt, it won't affect how much they can borrow should they take out a new loan with the big four bank. This will help lift the borrowing capacity of a potential borrower, as banks consider income, liabilities and outstandings when calculating how much they will give a potential borrower. NAB executive for home ownership Matt Dawson said the change would make a real difference for first-home buyers especially. 'For too long HELP debt has been a roadblock for many Australians looking to buy a home,' Mr Dawson said. 'NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.' The NAB move is in line with the Commonwealth Bank, which in April said it would exclude HELP debt from home loan serviceability calculations on the basis the applicant could pay off their debt in the next 12 months. CBA also said it was piloting plans for those who could pay off HELP loans over the next one to five years. In February, student debt came into the spotlight when Treasurer Jim Chalmers told the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority (APRA) to update their guidance on how banks should treat student debts. In June, APRA said the changes would come into effect from September 30 2025. While NAB welcomed the move by the regulator to increase buying capacity for homebuyers by clarifying the treatment of HELP debt, Mr Dawson said housing supply remained the most significant challenge. 'It is critical to address both demand and supply-side measures together to help more Australians buy a home. There's no simple fix, solving Australia's housing challenges will take collaboration across the board.' NAB's move comes after the Albanese government announced changes to HELP debt on Wednesday. In its first Bill since returning to office, the government plans to slash 20 per cent off three million graduates' HELP debt. This is the equivalent of $16bn in total relief, according to the government. The move targets HELP debt, VET loans and apprenticeship loans. Calculations released by the government show $5520 would be wiped off the average HELP debt of $27,600 if the legislation passes. The changes would also raise the minimum threshold for student loans to be repaid from $54,000 to $67,000.
News.com.au
20-07-2025
- Business
- News.com.au
'Depressing': Inside couple's two-year fight to buy an affordable home
Brie Eyre and John Rowe worked two full-time jobs, saved for years and lived with their family to afford their first house – and they still couldn't find a place after two years of searching. 'We went to a lot of suburbs that, at the end of the year, we were completely priced out of,' Ms Eyre said. 'It was so disheartening.' The pair began their journey looking for homes on the south side of Brisbane, under their budget of around $700,000. But with Queensland's median house price rising dramatically over the last few years, the pair found their options increasingly limited the longer they searched. 'We always think back to some of the first houses that we looked at in Corina and Carindale: great little houses that would have been perfect,' Ms Eyre said. 'We thought we could do better, and now we look back on it and think we could have saved so much time and money by purchasing there. But we didn't know how crazy the market would become.' Seeking a single-floor home for themselves and their dog, the two would spend almost every weekend at open homes and auctions, consistently outbid by others – sometimes with as small a margin as $1000. 'In the last six months or so, we put in quite a few offers,' Ms Eyre said. 'We actually got to a contract [in Forest Lake] … but someone put in an offer at the last second and beat us.' This turned out to be a blessing in disguise, when the pair finally found a well-sized home in Acacia Ridge. The area sports a median house price of $802,000, which it shares with its neighbouring suburb of Rocklea. This makes it one of the most affordable areas for houses within 10km from the CBD, with nearby suburbs such as Sherwood selling homes for $1.7 million. 'To get this property, in the last 6 months we had to ask our family for some loans to increase our borrowing capacity,' Ms Eyre said. 'We kept getting priced out. We were saving so much, but the market kept rising faster than we could have saved.' Ray White Annerley agent Bevin Powell has worked in Acacia Ridge for 15 years, and said he had begun to see 'a sudden shift' in the suburb's buyer demographic. 'Traditionally, it's been a low socio-economic area, with a lot of industrial bits and pieces surrounding it,' he said. 'It's still affordable at the moment, but I don't think for much longer: mainly due to investors coming in and seeing quite good value.' Mr Powell said while owner-occupiers were still buying in Acacia Ridge, investors were flocking to the market to buy sub-$1m blocks of land near the city while they still could. 'I think the days of it being one of the last affordable suburbs are coming to an end,' he said. Ms Eyre and Mr Rowe were overjoyed to finally get their first home, but said the journey was a total nightmare. 'It was so upsetting,' Ms Eyre said. 'It got so exhausting that we had to have time off [auctions] … it was getting depressing.' '[Now], I can't wait to have friends and family over in the backyard. We've never been able to have a property where we can host family events, so hopefully we can host Christmas this year.'
News.com.au
12-07-2025
- Business
- News.com.au
The ‘new normal' leaving Aussie first homebuyers behind
In a modest suburb an hour southeast of Western Australia's capital city, Perth, a tiny three-bedroom home on a 187 square metre block is expected to sell for nearly $700,000. Just three years ago, the home in Piara Waters would have sold for around $450,000. This equal parts dramatic and depressing increase exemplifies what real estate agent Aman Singh describes as the 'new normal' in Perth's housing market. 'You have seen the demand. This property is the only one available within this price range. So people are jumping on it,' Mr Singh told Brooko Moves. 'What's applying in Piara Waters at the moment is demand and supply.' It's a staggering statement when you consider the national average block size for a three-bedroom, two-bathroom home is more than double at 450 square metres. Mr Singh's stark advice is further proof of a market that isn't just out of control, but out of reach for most first homebuyers. 'Put your best offer forward, there may not be a second opportunity,' he insisted. He added that many properties were receiving multiple offers and often exceeded the asking price by $30,000 to $40,000. Of course this surge in property prices is not isolated to Piara Waters, a fairly new concrete city estate development where houses are mere centimetres apart and green spaces are scant. Across Perth, the median house price rose to $855,395 as of June 2025, which was a 7.8 per cent increase from June 2024. Even more terrifyingly, analysts predicted growth of up to 10 per cent more by the end of the year. It's a challenging time to be a first homebuyer, to say the least. Mr Singh said about 70 to 75 per cent of interested buyers were first-timers, and many were beginning to display their frustration. 'First homebuyers are more emotional buyers and quite often disgruntled, missing out on properties one after another,' he said. 'By the time they reach the sixth property and make an offer, they expect it to be accepted.' Still, Mr Singh urged first homebuyers to get into the market ASAP. 'That's the only way to get out of the rent trap because you are ultimately paying for somebody else's mortgage.' He remained insistent that right now was the best time to buy, encouraging buyers to ignore the possibility of a slump in about two years. 'For everyone, especially first-time buyers, get into the market as soon as you can,' he said. 'I don't believe the market's going to come down anytime soon, at least not for the next two years.' The situation in Perth reflects a broader national trend. In the March quarter of 2025, the average price of a residential dwelling in Australia surpassed $1 million for the first time in another punch to the gut for first homebuyers across the country. Prospective buyers have no choice but to attempt to craftily navigate a property landscape marked by rapid price increases, intense competition and limited opportunities. The Great Australian Dream for a growing number of young Aussies is starting to look more like a very expensive joke.
