Retired UN civil servant Linda Wirth and her two adult daughters, Lara and Jessye, are planning a multigenerational response to the rising costs of mortgages and shortage of rental accommodation.
An investor on the same terms is paying about $7300, an increase of around $2460. Investors purchasing through a self-managed super fund are paying around 9 per cent. A recent uptick in properties for sale is an early warning that some homeowners are trying to get in front of a change in market sentiment while prices are still strong, he says.
Wirth says there has been buyer interest “but many do not have the finances” to purchase. She was based in Geneva with the UN for 22 years before moving into her Camperdown loft apartment with a five-metre ceiling that borders Sydney University and the Royal Prince Alfred Hospital. “Before that, inquiries about purchasing had been strong, particularly from first home buyers,” he says. “There is not a lot of supply and confidence was returning because rates had not been rising every month.”Melbourne buyer’s agent Cate Bakos says demand from upgraders and downsizers remains strong. “Competition is tough . You would not know there are interest rate pressures,” Bakos adds
“A lot are putting bridging loans in their back pocket just in case there is not a smooth transition between the purchase and sale,” Bakos says. Lenders routinely circulate blacklists of postcodes to brokers on areas with large numbers of small apartments and off-the-plan purchases that could be hit first – and hardest – by a sharp correction.
Those likely to be under pressure were encouraged to use super savings to purchase small apartments, or off-the-plan units, through a DIY super fund during the height of the recent boom when interest rates were at record lows. She used the equity in her home to pay for the build and could comfortably accommodate the rental in the rear of her 1200 sq m property.