UPDATE: A woman’s controversial purchase of a “one-bedroom shoebox” for $720,000 in Manly Vale, Sydney, has highlighted the urgent crisis facing first-time homebuyers in Australia. Libby Angus, 30, revealed her decision has sparked a fierce debate about housing affordability as Australians struggle to get on the property ladder.
Angus, who invested her entire life savings in the rundown unit built in the 1970s, stated she believes the decision will pay off in the long run. The apartment, which had not been renovated since its construction, was riddled with issues, including asbestos concerns, dead cockroaches, and mice droppings. Despite these challenges, she seized the opportunity after qualifying for a government-funded 5% deposit just before it became widely available.
“I found the worst apartment in the best area,” Angus told Yahoo News. Her rationale? She calculated that her weekly mortgage payments would be comparable to those of renting a slightly larger unit in the desirable neighborhood of Manly. Angus aims to renovate the property to increase its value, stating, “My approach was short-term pain for long-term gain.”
Angus, who moved in with her partner the day after the purchase, immediately began renovations. “There was nothing clean… the oven had a whole grease panel that had never been cleaned,” she said. Her determination reflects a common sentiment among young Australians facing a daunting housing market. “We come from New Zealand, and our quality of housing isn’t much better, so we’re kind of used to living in s**tboxes,” she added.
The urgency of Angus’s story resonates with the latest findings from Cotality’s annual Housing Affordability Report, released on October 10, 2023. The report reveals that since March 2020, home values have surged by 47.3%, raising the median dwelling value to over $872,000. In stark contrast, median annual household income rose by only 15% to $104,390.
Eliza Owen, Head of Research at Cotality, commented on the troubling trend: “For first home buyers, the metrics are pretty disappointing. There’s this real disparity between where incomes are and where property prices are that show a kind of structural shift in who can access the market.”
Angus’s experience is not just an isolated incident; it exemplifies the struggles many Australians face in a market that has increasingly favored investors over first-time buyers. With housing affordability sinking to record lows, the divide between property owners and non-owners is growing wider.
Angus urges others to consider home buying despite the risks, encouraging potential buyers not to be deterred by horror stories. “Don’t overthink it,” she advised. “At the end of the day, you can just sell it if you hate living there.”
As the housing crisis deepens, Angus’s story serves as both a warning and an inspiration for those navigating the challenging landscape of property ownership in Australia. As she looks to the future, Angus embodies a spirit of resilience that many hope will lead to positive changes in the housing market.
For updates and further developments on this pressing issue, stay tuned.
