First-home buyer Kallan Mende secured an affordable property amid tough competition. Picture: Liam Kidston
First-home buyer Kallan Mende compares securing a property after a stressful search to “grabbing the last rung of the ladder as it is being pulled up”.
The Brisbane IT worker was not only up against rising prices, but also fierce competition from investors who had established a firm stronghold in some of the city’s most affordable suburbs.
Mr Mende said he missed out on several properties because they were sold tenanted, but he wouldn’t qualify for the government’s First Home Guarantee unless he lived in the home within six months.
He originally wanted to build new or buy in his hometown of Ipswich. Picture: Liam Kidston
The 30-year-old began house-hunting after moving back home to save for a deposit. At first, he planned to buy close to Ipswich, where he had spent most of his life.
But Mr Mende found the area, despite its relative affordability to metro Brisbane, “unattainable on my own income.”
A disheartening five-minute phone call with a builder, who swiftly dismissed his annual income as $60,000 short for a new build, underscored the challenge he faced.
Last year, the Ray White employee secured loan approval for up to $500,000 and shifted focus to older homes, but even townhouses and units were scarce, and snapped up within a week or two of listing.
Competition was mind boggling, Mr Mende said. Picture: Liam Kidston
“There was basically nothing,” he said.
“I was going to inspections and calling agents, but a lot of places didn’t fit what I needed, and I’d have to walk away.
“Townhouses are very regularly purchased as an investment and almost always have tenants, so vacant possession is just not a thing.
“The amount of competition at every single inspection was mind-boggling. It was a mix of older couples looking for an investment and younger people trying to get into the market.”
Mr Mende broadened his search “from here to Beenleigh” and finally secured a two-bedroom townhouse in Waterford West for $500,000.
Although it was leased, the tenant would vacate within six months of settlement, allowing Mr Mende to qualify for a government grant as well as exemption from stamp duty.
He had saved $26,000 towards a deposit and will spend just over half his income on monthly repayments.
Investors snapped up many affordable properties
MORE NEWS
Teneriffe home has ‘wow factor’
Aus’ top hotspots where homes are under $650
Star’s $91m rise from living in car to multimillion-dollar mansions
“It will be the most I’ve paid for four walls and a roof in my lifetime, but it is a significant relief that it is building my financial future rather than going into someone else’s pocket, and just the security that I don’t have to worry about my landlord kicking me out in 60 days,” Mr Mende said.
He is grateful to have been able to save while he paid below-market rent staying in his dad’s property before buying, but believes others just starting out in their career can also prioritise homeownership.
“I definitely feel like I’ve grabbed the last rung of the ladder as it’s being pulled up,” Mr Mende said.
“I don’t know what the real estate landscape is going to look like in the future, but people I know are waiting for a crash and I don’t see that happening.
“For me, this property may not be where I live for the rest of my life but at least I won’t still be trying to get into the market in a few years.
“I look at it like work – you don’t start out in your dream job, you might start in an entry level position and do the grunt work.”
English (US) · 