Just days after buying their new family home, Iain Reid and Diandra Gavillucci saw their cost of living spike – and had a serious conversation about their expenses while handling a new mortgage.
“Just days after we signed the contract, the war in the Middle East started, interest rates rose and fuel prices went up,” Mr Reid said.
“It seems like we bought and World War Three broke out.”
Diandra Gavillucci and Iain Reid bought their new family home only days before having to re-evaluate their expenses, thanks to interest rate rises and the Iran War. Picture: Lachie Millard
The couple moved into their new home less than a month ago, looking to have more space for their one and two year-old kids.
But with Mr Reid working from home and Ms Gavillucci looking for a new job, the two realised they could soon have less money to work with than they had expected.
“We’ve talked about if we take one of the kids out of daycare,” Mr Reid said.
“Diandra’s taking on contracting work in the meantime, just one day a week – just to take off some of the pressure.
“I’m pretty sure rates are going to rise again – that and with fuel prices and cost of living going up has made for a stressful time.”
The family now need to balance a new mortgage, daycare expenses and their jobs, all while cost of living is higher than ever. Picture: iStock
New research has found Queenslanders are feeling mortgage pressure across the board, with 44 per cent delaying or skipping health appointments to help meet their repayments.
With Queensland’s average healthcare expenses at a steep $4,284 annually, data from Money.com.au saw 61 per cent of these homeowners had passed on a dental appointment that month.
Meanwhile, 23 per cent of the group had chosen to avoid specialist visits, along with 12 per cent delaying mental health care – and 4 per cent even delaying surgery or other medical procedures.
Some mortgagees are skipping health appointments such as dentist trips to help pay off their loans; something Mr Reid and Ms Gavillucci are working to make sure they never do.
Mr Reid and Ms Gavillucci said while they didn’t plan to sacrifice health, they understood making cuts in difficult times.
Mr Reid, who grew up in the UK, said the pair moved back to Australia during the Covid pandemic, and had to live in Brisbane over Ms Gavillucci’s home town of Melbourne for affordability reasons.
“We obviously don’t have family here so it makes it more challenging,” he said.
The two both moved far away from home to start their family in Brisbane, and learned how important it was to keep a balanced budget. Picture: Lachie Millard
“If we want to go on a night out for example … you’re probably $300 down on a babysitter before you’ve left the house.
“I run a business from home, so having two kids around while trying to do that is less than ideal.
“And Diandra’s trying to look for work and look after kids at the same time, which makes that process harder.”
The family is currently planning to sell their former home at 21 Kuranda St, Balmoral, with McGrath Estate Agents.
The family’s old home 21 Kuranda St, Balmoral, will be going up for sale with McGrath Estate Agents in the coming weeks.
The Queenslander’s separated living environment was a great option for the couple before they had kids, now planning to move into a single-level home.
Agent Tony O’Doherty said avoiding mortgage stress in the future involved thoroughly understanding your maximum capacity with help from a professional.
“I’ve seen multiple cases, even recently, of emotional competition pushing a buyer up to a level they may not want to honour,” he said.
“Before you go into the market, you should have met with your broker and know your limits. Your limits should not be your perception of what you want to go to, but the maximum of what you’re willing to go to … then you can try to work beneath that.”
McGrath agent Tony O’Doherty said a buyer should understand their maximum limits before
Mr Reid said he did not feel home buyers in the UK needed to worry about the same things as Aussie home buyers.
“I think in the UK, housing is seen as a necessity as opposed to an investment opportunity,” Mr Reid said.
“I think the issue with the housing market in Australia is a supply and demand one. Governments in each state are building more and more housing outside of the CBD, and I don’t think there’s enough public transport options for people to buy and live – so they become very attractive to investors for people to buy and hold while infrastructure comes.”
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