New homebuyers are among some of the worst hit by a perfect storm of rising interest rates and cost of living, market analysis shows.
"It's been very, very tough," Mr Afzal said.Mr Afzal estimates they are sacrificing 70 per cent of their income on housing right now.She was told a build would take six to eight months.
"You just get really nervous … especially being in my mid-20s, you know, the future of like, are we going to have children?" she said.Ms Wheeler now regrets locking herself into building a home, and she knows many other young people in the same boat who bought during the pandemic. Digital Finance Analytics principal analyst Martin North said many first time buyers got into the market to take advantage of the government's home-builder incentives."They tended to have bought with very large mortgages they bought at the top of the market, and now there's a pincer movement going on," Mr North said.
"In some cases, they're going up from a mortgage rate of 1.99 per cent, to about 4.5 per cent, so that's a really big move," Mr North said.March quarter data from the Australian Prudential Regulation Authority shows residential loans 30 to 89 days past due totalled $8.9 billion nationally.
"If we did get rising unemployment, and people were struggling to generate the sort of income they need, then it could be a problem."
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