The cheapest homes in South Australia are being snapped up in droves, but it appears first home buyers are still struggling to get a foot in the market.
Several move-in ready homes priced under $400,000 – including those in Mount Gambier, Cleve, Roxby Downs and Millicent – have sold or gone under offer in recent weeks as buyers rush to snap up properties before Christmas.
But sales agents say the regional location of South Africa’s most affordable homes often puts them out of reach for first-home buyers, who typically need to be in stable, full-time employment for a year before lenders will consider their financing applications.
“It’s easy (to buy a cheap house) if you’re local (in a certain region), but it’s harder if you’re moving from elsewhere,” says Deon Howell, of South East Property Sales and Management.
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The Mount Gambier unit at 1/210 Commercial St East sold in October for $390,000.
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It has two bedrooms and a bathroom.
It is centrally located and close to the Blue Lake.
“First home buyers are finding it increasingly difficult (to secure affordable housing) and if they want to get in (get financing approved) they really have to work somewhere for 12 months.
“That’s fine if you’re working with a larger company – and we’ve had some lucky ones (first home buyers buying in the South East) who have moved (to the region) from big companies like Woolworths.
“But it is very difficult for tradies and people who work for smaller companies.
“We’ve had a lot of guys come this way and they get a job and then they go and rent and after that 12-month period they go and buy – but renting is also quite difficult (to secure).”
Mr Howell said Millicent’s property market had shown significant growth over the past year but remained affordable, as did the nearby satellite town of Mount Burr.
Among Mr Howell’s current Millicent listings are a three-bedroom duplex at 8 Stark Ave for just $354,900 and a three-bedroom house at 17 Bowering St for $390,000.
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The Millicent property at 17 Bowering St is listed with a price tag of $390,000.
It stands on a 795 m² block and has three bedrooms and two bathrooms.
Other neatly presented, affordable options currently listed on realestate.com.au include a four-bedroom house at 25 Quandong St, Roxby Downs, for $260,000, and a three-bedroom house with a coop and chicken coop at 42 Tumby Bay Rd, Cummins, for $350,000.
There’s even a Whyalla Norrie house with a pool on the market for $349,000.
Wardle Co Real Estate sales agent Angus Barnden has several homes in Peterborough for sale for under $300,000 and said the mid-north city, along with nearby Whyte Yarcowie, continued to offer value for money.
“There may be a few cosmetic things that need to be done, but that’s minor,” Mr Barnden said.
He said the most recent sales in the Peterborough and Whyte Yarcowie areas had gone to investors rather than first home buyers, and he agreed that financing could be difficult for those making their debut on the housing market.
“I would say 75 per cent of buyers of the Peterborough and Whyte Yarcowie listings would be people who have bought a home before or are not first home buyers,” Barnden said.
“For some reason, and I don’t know the exact details of it, banks don’t like (lending to first home buyers buying in regional areas).
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The Peterborough home at 78 Moscow St is for sale with a price guide of $299,000.
It stands on a 952 m² block and has three bedrooms and a bathroom.
“They consider it a slightly higher risk and I think given the size of some towns – there are probably 20 people living there (in Whyte Yarcowie) and there are no amenities in the town – that is understandable.”
Mr Barnden currently has a three-bedroom stone villa at 78 Moscow St, Peterborough, for sale for $299,000.
A low-maintenance two-bedroom house at Boston Cl 8, Jamestown, is for sale for $375,000 and there are several houses for sale in Melrose and nearby Booleroo Center for under 400,000.
“For people wanting an affordable home, Peterborough is probably a good starting point, as is Orroroo,” Barnden said.
“You’ll still find some (affordable) homes in Jamestown that are in the high two to low three ($200,000 to $300,000) – it just depends on what you want.”
– by Lauren Ahwan
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