‘Feel sick’: Home owners lose thousands as budget hits
When Penny Vandenhurk’s dream home was for sale in Sydney’s inner west, she jumped at the chance to buy privately.
The mother of two paid $2.7 million for her new family home, but just five hours after signing the dotted line, the federal budget was announced.
Penny Vandenhurk’ paid $2.7 million for her new family home, but just five hours after signing the dotted line, the federal budget was announced. Nine
“We were just a bit oblivious as to the impact that a change to investor rules was going to have on the whole owner-occupier market,” Vandenhurk said.
The reforms include restrictions on negative gearing.
Penny didn’t think that would impact the sale of her previous apartment, but within just five weeks she sold it for $140,000 less than its valuation.
It was a huge blow when another unit in her building had just sold for more.
“We stretched massively to buy (the new home) and then you just feel sick to think that five weeks earlier, a very, very comparable property sold for a hundred grand more,” she said.
The budget changes were made in favour of first home buyers, but Nine’s Money Editor Effie Zahos says it’s still too expensive to enter the market.
“A two income household earning, say, $160,000 would not be able to afford a house in Sydney, even with a 20 per cent deposit,” she said.
That’s despite falling housing prices.
CoreLogic data revealed prices were down 0.7 per cent nationally last month, with properties in Adelaide and Brisbane joining the downturn.
The budget changes were made in favour of first home buyers, but Nine’s Money Editor Effie Zahos says it’s still too expensive to enter the market. Nine
Auction clearance rates are also down to just 46 per cent nationally, according to the latest figures from Domain.
Damien Cooley is one of Australia’s busiest auctioneers.
“I remember the days when we had buyers down the stairs queuing out the door (of the auction room),” said Cooley.
“What we’re really seeing is a retreat from investors. We’re seeing buyers not necessarily have a fear of missing out any more, probably more of a fear of overpaying.”
Zahos believes the budget has brought about uncertainty and panic.
“It means three rate hikes, inflation pressure and affordability has not improved,” she said.
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