A growing number of first-time homeowners, even those with high incomes, are facing financial strain due to increased mortgage repayments and the rising cost of living. Some are resorting to moving back in with their families to alleviate expenses.
First homeowners, even those with high incomes who bought before interest rates rose, are struggling with higher repayments. Some are moving back in with family. Others are facing soaring mortgage repayments and the rising cost of living , having depleted their savings buffers. They are considering downsizing or relocating, according to mortgage brokers.
This follows the Reserve Bank's 13 interest rate hikes from record lows, maintained for over a year, longer than economists initially predicted. Rate relief is not expected until at least February, and possibly May. Shore Financial chief executive Theo Chambers observes a trend among young couples with combined incomes of $400,000 to $500,000, a $2 million-plus mortgage in affluent Sydney areas, and two children in childcare. They can't afford their homes and are moving back in with parents. They bought at 2 percent interest rates, assuming they could easily afford a $3 million house in Bondi. They now have children, pay roughly $7,000 a month in childcare fees (without subsidy eligibility), and are on competitive interest rates, making refinancing into cheaper deals impossible. They've cut discretionary spending and holidays, reduced to one car, and are awaiting interest rate relief. Many are moving back in with family to eliminate childcare fees and rent out their properties, hoping things will be easier once their children start school in a few years. Meanwhile, the high cost of childcare while working, coupled with the limited space in their $3 million suburban homes, further strains their finances
Housing Market Mortgage Rates Cost Of Living Family Finances Homeownership
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