First homebuyers rush mortgage cliff sale

When a young family hit the mortgage cliff, desperate action was required — luckily there were plenty of first home buyers fighting over their inner city pad.

First home buyers cram into 51/32 Rosehill St, Redfern at today’s auction. Photo by Jeremy Piper

When a young family hit the mortgage cliff, desperate action was required — luckily there were plenty of first home buyers fighting over their investment pad at auction on Saturday.

The one-bedroom apartment with parking at 51/32 Rosehill St, Redfern attracted 13 registered parties with five of them making frantic $10,000 bids for it from $700k.

When auctioneer Damien Cooley slammed down the gavel at $873,500 — well above the $800k reserve — vendor Jo Harward was all smiles.

“This will really take the pressure off our outgoings,” the mum of three — two girls and a boy aged six, four and one — said.

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The happy vendor Jo Harwood after her apartment sold today. Photo by Jeremy Piper

The purchaser from Manly was also all smiles. Photo by Jeremy Piper

She’d bought the split-level 80 sqm apartment for $500k in 2012, intending to move in.

But then she went overseas on a holiday and met her husband. “Not long after that I was pregnant!” she laughed.

Like thousands of other young Sydney families, coping with rising interest rates has been tough.

“When we bought our Oatley home, we were on a fixed rate of 1.9 per cent,” she said.

“But now we’re come off that and it’s gone up to 6.2 per cent!”

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The lounge had a double-height ceiling and opened to a balcony with district views.

The kitchen and bedroom were on the upper level.

Even with the $725 weekly rent, Jo said it was tough to make ends meet.

The Agency’s Brad Gillespie said most of those interested in the third-floor apartment, which had southerly regional views from the balcony, were first home buyers.

No wonder, with its $735k guide.

The successful purchaser, though, was a second-home buyer from Manly, who secured it with a $500 final bid.

“This little pocket of Redfern is a hot spot,” Mr Gillespie said.

“You’re right by the new entrance to Redfern station and you’re close by the new Waterloo metro.”

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8 Mcelhone Place, Surry Hills had a $950k guide.

It sold for $1,291,000, $191k over reserve.

The colourful kitchen.

There were first home buyers keen on a charming one-bedroom cottage at 8 Mcelhone Place, Surry Hills, one of inner Sydney’s prettiest pedestrian-only laneways.

LJ Hooker Double Bay’s Aaron Del Monte had a $950k guide and had massive interest during the campaign for the 1830s home on a tiny 51 sqm block that last traded for $745k a decade ago.

With 15 registered and nine of them competing, bidding started at $1m.

There were initially $10,000 bids down to $2,000s at the end, with it selling for $1,291,000, $191k over the $1.1m reserve.

Mr Del Monte counted 60 bids. “They weren’t huge increments, but there were a lot of them,” he said.

“We had a lot of interest, including one registered on the phone from London though she didn’t bid.”

The purchaser was an investor, who can expect $900 a week in rent.

Originally published as First homebuyers rush mortgage cliff sale