THE tide is starting to turn in first home buyers favour against investors from Parramatta to Potts Point.
And agents say almost all of the extensive interest in a revived burnt-out two-bedroom Surry Hills terrace up for auction this weekend is coming from first home buyers.
It was hot property when it sold for $911,000 a year ago in more ways than one. A fire department spokesman confirmed that two people had to be rescued, with one taken to hospital by ambulance.
The builder who bought it, Patrick Monica, has since rebuilt its interiors. “There wasn’t a lot to salvage apart from the floor joists,” he said.
It remainsto be seen if the Federal Government salary sacrificing plan, announced in the Budget, encourages more first timers.
A first homebuyer bought in this Parramatta tower on Saturday.
They certainly face an uphill battle — latest data from earlier this year show that investors took out almost 57 per cent of all NSW home loans.
But agents in recent weeks say that first home buyers are increasingly winning the war against investors in the wake of banks making it more difficult for investors to get a loan.
In Parramatta, a first homebuyer couple from Bankstown beat investors to a two-bedroom apartment on level 20 of the ‘Rise’, paying $765,000.
“The apartment market has changed in the past six months,” the agent, Jeff Chang of Ray White Parramatta, said.
“We’ve seen first home buyers increase by 20 to 30 per cent and investors dropped at a similar margin.”
The 94 sqm property at 2002/29 Hunter Street has 270-degree city and park views, with two bathrooms and one car space.
Many first home buyers are also counting on a bit of help from their parents.
Just last weekend, Waverly parents Pierre Laffont, his wife Jennifer Keir beat off four investors at the auction of a one-bedroom 41 sqm Potts Point apartment that sold for $670,000.
Pierre Laffont beat investors to buy a Potts Point apartment for his daughter. Photo: Chris Pavlich
Investors were left disappointed. Photo: Chris Pavlich
Mr Laffont’s daughter, 26-year-old pharmacist Isabella, hadn’t even been to see the 1920s unit at 4/121 Macleay St.
But her doting dad, a retired banker, explained Isabella “couldn’t confront another auction”.
“Investors always overbid her and it’s really painful … she can’t stand it any more,” Mr Laffont said.
“She’s so desperate … she falls in love and then misses out.”
The tiny kitchen in Isabella’s Potts Point apartment. Photo: Chris Pavlich
The tiny unit had a shared laundry on the communal rooftop and no car space.
One of these attempted a $25,000 knockout bid. But given the relatively low $476 a week rent, they couldn’t compete with a desperate dad.
And lucky for Isabella, her parents paid half the deposit.
“Of course,” Mr Laffont said. But he added: “She has to pay back the mortgage!”