How this first homebuyer broke out of the vicious rental cycle

A Brisbane first homebuyer has broken out of the vicious rental cycle at a time when rents are predicted to rise further. Here’s what she did.

Katelin Fox, 22 has broke free from the rental market after purchasing her first home, a townhouse in Petrie, northern Brisbane. (Katelin did not want her specific unit identified) pic Lyndon Mechielsen/Courier Mail

A 22-year-old first homebuyer has broken out of the vicious rental cycle at a time when rents are predicted to increase further and the cost of living is set to worsen.

Katelin Fox has purchased a townhouse in a complex in Petrie, in Brisbane’s north, after paying $200 a week to rent with her brother.

It comes as a new report by Suburbtrends predicts the median house rent in Petrie to jump by $27 to $552 a week in six months‘ time.

Ms Fox said purchasing a property would set her up for a better future and allow her to eventually use it as an investment — especially with the potential for greater rental income in the suburb.

“I’m building equity by paying down my mortgage and making better financial decisions rather than renting where you can fall into a vicious cycle,” Ms Fox said.

“I’m surrounded by two good schools, close to the train station, close to the university.

“The location of my property is perfect for investment purposes, given the massive growth in the area.”

Ms Fox said she had a good mortgage broker who helped her make decisions around which bank would lock in her interest rate while she found a property.

She advised fellow first homebuyers to not to be put off by the number of people looking for a property.

“Just put your best foot forward and don’t get defeated,” she said.

“I was super grateful. The buying process was super quick for me. Lower your standards. Many young people want to move into a big mansion as their first home.

“Live within your means. It’s a starting point to get you into the market.”