‘Brutal’ property prices forcing locals out of a family town

As property prices skyrocket in coastal areas around Australia, the market is being described as “brutal” for families trying to purchase a place.

Mum of three Rachae Hutton is growing more “disheartened” every day as property prices on the Central Coast of NSW soar.

Along with her husband, they are facing the prospect of saving an “insurmountable amount of money” amid a market has that gone crazy.

“If we saved everything above the absolute necessity, we would still be saving for three years for the amount we need to have a deposit and it’s still not enough as houses have gone up $100,000 in the last six months on the Coast for three to four bedroom house,” she told news.com.au.

The family currently rent a four bedroom property and can’t leave the area for family reasons.

At one stage, the couple who each have a child from a previous relationship, were facing the impossible decision of whether having a baby together would completely rule out their home ownership dreams.

“We were seriously considering putting it on the backburner in order to provide a family home for the kids and then we wouldn’t have to move and we would get that level of security and that Australian dream. We ended up deciding not to put what we really wanted in life off for something that may or may not eventuate,” she said.

“Even with a savings plan if we put a baby off we still wouldn’t be remotely close to purchasing a home before we had a third child, so we had to think about do we want? To create a family or do we want a family home and had to think about our priorities.”

They had to have serious conversations about their much wanted a child and the impact it could have on buying a house. Picture: Supplied

Ms Hutton works 30 hours a week in business support, while her husband is a butcher. They manage to save $1600 a month and have more than $13,000 saved so far.

She said she saw a house in Wyong, about 100kms north of Sydney, go up for sale that wasn’t very “nice” and they wanted close to $1 million for the three bedder.

“I don’t understand how buying a house is actually achievable. We earn a decent amount of money and we wouldn’t be able to afford $800,000 for a three bedroom c**p shack, it’s a bit of brutal,” she said.

The 33-year-old, said she checks out real estate listings frequently.

“I have a found a three-bedroom town house listed that could be suitable for the three kids – one room is big enough for both our older kids to share – that’s under $600,000 but it’s still just slogging away to even get the money together. We save everything we can and we not even halfway to what we need to be considered for a mortgage,” she said.

“Its increasingly frustrating when we earn a good income and have stable jobs. But saving with three kids and rent is so difficult.”

The couple’s three kids aged 11, 9 and one. Picture: Supplied

What hurts most for Ms Hutton is the possibility she won't be able to pass an on asset on to her children aged 11, 9 and one, and help give them a “leg up” in the future.

“I definitely don’t feel its possible the way it used to be buy a property and the dialogue that Millennials and Gen Y are wasting their money on smashed avo, its really not the case,” she said.

“The generation before us, the Baby Boomers they could buy a property on a single income, a parent could stay at home and one could go to work or mum could be working part time and dad working full time and they would still be able to get a home and buy a house with less of a deposit because the ratio between wage increases and house increases wasn’t as varied.

“There is no way a single income family would qualify for finance, let alone the asking price for properties. The options are limited when you have a family as you can’t get a one or two bedroom apartment.”

Without extreme measures like moving in with parents to save money, which isn’t an option for her family, Ms Hutton believes its almost impossible for regular Aussies like her to get a foot on the property ladder.

“Not everyone can live with their mum and dad until their 24 or go back to mum and dad to live with,” she noted.

She added she drives a 14-year-old car and would happily save all their money and live off “two minute noodles” but that's not possible with kids.

“We want to have good meals and have decent clothes. I take them shopping at the Salvos. We want to teach them the value of money and we are not overly extravagant people,” she said.

“We go camping and have barbecues at home, we don’t eat out and we have used two Dine and Discover vouchers as we just don’t go out.”

She thinks something has to change as the couple can easily service mortgage repayments, but can never save enough money for a deposit with skyrocketing prices.

Rachae Hutton is wondering how her family will ever be able to afford a home on the Central Coast. Picture: Supplied

Cathy Baker, principal at Central Coast’s Belle Property, described the market as a “little frenzy” at the moment.

“There are very low stock levels so anything that is coming to market is basically selling in isolation, rather than competition, which means achieving a premium price,” she said.

A recent four bedroom, two bathroom property she sold on Scenic Rd in Killcare Heights had a price guide of $4.3 million but sold for $5 million without the new owners ever stepping through the doors. She said it last sold three years ago for $2.7 million.

Another property in the area was forecast to sell for between $1.8 million and $2 million but went to a US buyer via a virtual auction for $2.2 million. The two bedroom property was last sold four years ago for $1 million.

Ms Baker, who has worked as a real estate agent for 12 years, said the growth in working from home was also encouraging people to buy and split their time between Sydney and the Central Coast.

“Over the last 12 to 18 months, we have sold three times volume we would normally sell in any particular year and makes me wonder how many more properties could possibly come to market,” she said.

“We can’t sustain that level of properties and quantity of sales and ... I think that will have a stabilising influence.”

The Central Coast is popular for holidays. Picture: Supplied

A Sydney buyer recently smashed Central Coast records by paying $8.1 million for a 1970s beach shack, netting the owners $5.3 million in just four years.

There was still a strong interest in buying up Central Coast homes for the holiday market, she added.

“When you look at returns they are getting $100,000 to $200,000 in holiday rental returns,” she revealed.

“It’s an area that is very popular for holidays and so close to Sydney that it’s an investment into something into that is quite lucrative.”