Doug Ryan, who has lived on his boat ‘Shazam’ for a decade, has advice for those seeking a floating home. Picture: Shae Beplate.

With an increase in Queenslanders seeking refuge from the housing crisis by taking to the water, more Townsville locals have been considering calling a boat home.

In Townsville, both tenants and buyers are competing in a tight market when looking for somewhere to live.

The latest REIQ data found Townsville had a vacancy rate of just 0.9 per cent, with that figure not trending above 1.2 per cent since June 2020.

While the August REA Group Listing report found new and total sale listings in regional Queensland had dropped last month, down 14.6 per cent and 13 per cent year-on-year respectively.

So, it is no surprise some are considering trading solid foundations for sea legs.

Experienced sailor Doug Ryan lives aboard his 44ft sailboat, Shazam, which he berths at Magnetic Island.

The 79-year-old said he was seeing an increase in people considering the live-aboard life.

“I get asked at least once a fortnight by someone about buying a boat to live on, particularly young people in their 30s.” he said.

“It’s that image of how glamorous it is to be on a boat.”

Doug Ryan’s boat Shazam during Magnetic Island Race Week. Picture: Revolution Productions

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Australian Bureau of Statistics data from the 2021 census showed 29,369 people were living in either a cabin (land-based) or on a houseboat on census night.

Of that, 1978 were in a marina, 22,354 were in land-based locations, and 5,038 indicated ‘other’, potentially accounting for thousands on houseboats outside of a marina.

Mr Ryan said live-aboards were an eclectic bunch, with some on houseboats that never moved, others anchored on rivers and in bays, and some who sailed around in their ‘home’.

“A lot of them are casual,” he said.

“They’ll come up here for four to six months and go back to their house down south for summer.”

John Norfolk, owner of Brisbane-based Infinite Marine Brokers, said he had noticed a massive influx of buyers searching for a vessel they could live on full-time in recent years.

“I’d say at least 40 per cent of inquiries are now for live-aboard boats,” he said.

“That’s about a 10-fold increase compared to pre-Covid.”

This LaBelle 44 is for sale for $85,000 ONO. Picture: Boatsonline.com.au

Mr Norfolk said inquiries were mostly coming from retirees, couples and single parents.

“When a cheaper houseboat comes up, around the $90,000 – $120,000 range, we become bombarded with inquiries,” he said

“They don’t care about condition, they just want cheap accommodation.

“Most of the live-aboards that we’ve encountered are throughout the Gold Coast waterways.

“There’s also a few in the Brisbane River and a handful in the Bribie passage.”

A Maritime Safety Queensland spokesman said it was legal to live aboard a boat in most Queensland areas, apart from some regulated waterways of the Sunshine Coast, as long as vessels met standards and regulations under the Transport Operations (Marine Safety) Act 1994 and complied with sewage discharge and waste management requirements.

“Other factors that impact living on board include restrictions on anchoring, mooring and grounding in some areas of the Gold Coast and Sunshine Coast,” the spokesman said.

This Bruce Douglas designed timber motor cruiser is for sale for $399,000. Picture: Boatsonline.com.au

Mr Ryan said anyone wanting to live aboard needed to consider the costs beyond buying a boat.

“Normally, the average cost would be about 15 per cent of the purchase price a year to maintain a boat,” he said.

“A boat like mine new would cost about $800,000 but you can buy a smaller live-aboard for probably about $50,000.

“Anything under that you’d be worried about whether it’s structurally sound.”

Mr Ryan said houseboats that didn’t move tended to be more affordable, compared to vessels used for travel, but there were marina fees to consider.

“On average for a boat the size of mine, you’d pay about $1000 to $1200 a month (for a marina berth),” he said.

“If you’re at anchor you need to row or motor to shore and you need access to water.

“But electronics are getting better with solar panels and such, so it’s getting easier to be self-sufficient.”

Doug Ryan aboard Shazam, the boat he calls home and also races. Picture: Shae Beplate.

Mr Ryan said ‘Shazam’ was like an apartment on water with three bedrooms, two bathrooms, a big lounge and a galley, but it was also designed to race.

“We actually got third at Magnetic Island Race Week this year,” he said.

“I also take it out at least twice a week

“It takes me about five minutes to throw the lines off and then I’m out looking at dolphins and whales.”

Mr Ryan warned that living aboard wasn’t always “sunsets and champagne”.

“We noticed during Covid, a lot of people bought boats and the prices were really high,” he said.

“Once people got on them and realised it wasn’t the easiest life – you do have to know a bit about electronics and mechanics – a lot of boats came back on the market.”

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The great Victorian dream of retiring debt-free is collapsing, with families forced to carry mortgages into what should be their golden years.

More Victorians are reaching retirement still paying off their mortgage, with agents and brokers warning younger buyers could face the same fate as loans grow larger and people enter the market later.

Westpac research shows the average age of first-home buyers across its national lending network has climbed to 34, up almost two years since 2020.

SuburbTrends analysis of ABS data reveals the median age for paying off a mortgage has stretched from 52 in 1981 to 62 in 2016.
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By the 2021 Census, almost one in four Australians aged 55-64 were still paying home loans.

SuburbTrends director Kent Lardner said the bigger concern was what lay ahead for today’s younger buyers.

“If a first-home buyer today purchases an inflated asset that doesn’t keep growing, they could be saddled with a large mortgage into retirement with fewer options to downsize,” Mr Lardner said.

McGrath Coburg/Brunswick’s Kelli Johnson says skyrocketing living costs have left more Victorians dragging mortgage debt into later life.

McGrath Coburg/Brunswick agent Kelli Johnson said the change was stark compared with a decade ago.

“Everyday costs – utilities, services, even groceries – have climbed so high that more people are carrying debt into later life than ever before,” Ms Johnson said.

“Ten years ago households could manage. Now the financial pressure is far greater.”

Ms Johnson said many buyers in their 30s and 40s were already struggling to secure finance, with family wealth increasingly stepping in to bridge the gap.

“Many turn to their parents, either borrowing a deposit or being gifted funds,” she said.

McGrath Langwarrin’s Ty Luff warns growth corridor buyers are especially vulnerable, with small deposits turning into lifelong debt traps.

McGrath Langwarrin agent Ty Luff said mortgage stress was more concentrated in growth corridors where buyers had entered with smaller deposits.

“In areas like Cranbourne or Clyde, many buyers came in with small deposits and are far more leveraged,” he said.

“Over the past 20 years I’ve noticed a real shift. A lot of people redraw on their mortgage for things like a new car or holidays, so instead of paying the loan down, they keep extending it.”

Mr Luff said older homeowners were increasingly selling the family home to downsize and free up equity.

“The banks generally won’t lend beyond a certain age. They want to see loans repaid before someone reaches their mid-60s,” he said.

“So the pressure is there to have things under control by then.”

Across Victoria, more households are finding retirement overshadowed by the crushing weight of home loans. Picture: Jake Nowakowski

Mortgage broker and Frame Finance director Imogen Alexy said the contrast with the baby boomer generation, who largely entered retirement debt-free, was significant.

“A few years ago, paying off your home loan before retirement was an achievable dream, the reality now is very different,” Ms Alexy said.

“A standard 9-to-5 income often isn’t enough to clear a mortgage by the time people reach retirement.

“Without a clear plan of attack, many are heading into later life still carrying significant debt.”

Ms Alexy warned that dipping into superannuation to wipe out loans was fraught with risk.

Older Victorians are furious, betrayed after decades of work, they are robbed of a debt-free retirement.

Frame Finance director and principal broker Imogen Alexy says the dream of clearing debt before retirement has vanished for many families.

“For those with lower balances, it’s a huge concern. They may end up relying on the pension, which isn’t much to live on.

“In most cases, I’d recommend downsizing before dipping into super.”

Ms Alexy said government schemes designed to help first-home buyers into the market sooner could create fresh risks down the track.

“They get people into the market sooner, which is important, but they also mean you’re borrowing more with less equity behind you,” Ms Alexy said.

“If you’re taking a 30-year loan at 40, are you really planning to work until 70?

“You can’t just rely on capital growth to do the heavy lifting anymore.”

Seniors First founder Darren Moffatt blames decades of failed policy for the surge in retirees still owing the banks.

Seniors First founder Darren Moffatt said “a systemic failure of public policy” dating back to the deregulation of the banking sector in the early 1990s lead to more people retiring with a mortgage.

He said reverse mortgages, where homeowners convert some equity in their home into cash, could take pressure off households later in life, provided they were used carefully.

Even in Melbourne’s suburbs, where home ownership once meant security, the mortgage nightmare is following residents into old age. Picture: Tony Gough

Homesafe Wealth Release chief executive Dianne Shepherd said nearly half of Australians now retire with a mortgage, a figure that had surged by 600 per cent since the late 1980s.

“The intention of the superannuation scheme was that by the time you retire you would own your home and have enough money to live on. The reality has turned out very differently,” Ms Shepherd said.

“Many older homeowners have worked hard and raised families, but are now squeezed by rising living costs and uncertain income in retirement.”

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Prospective Aussie homebuyers are being urged to take a very different move to getting into a new home by real estate guru John McGrath.

Research director Tim Lawless recently commented that vendors are in a strong position as they head into what will be a very active spring selling season.

I couldn’t agree more.

Buyers should prepare to compete against larger than usual crowds at open homes and auctions – and not just because spring is traditionally the busiest time of year for real estate. Both sales and rental markets in areas like Brisbane, Adelaide and Perth are still very tight.

The September Home Value Index showed these cities have some of Australia’s highest annual dwelling values and rental growth.

In Brisbane, yearly house values have risen by 6.4 per cent while house rents have increased 5 per cent, with very similar figures in Adelaide and Perth.

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It’s a seller’s market.

This spring is also seeing much more first homebuyers as well, many of them likely encouraged by the federal government’s recent announcement of an expanded Home Guarantee Scheme.

A recent report from the Commonwealth Bank and PropTrack revealed that despite affordability challenges, there have been more first homebuyers on the market in the past year than in the 2010s, or even before the pandemic.

There’s certainly several good reasons for both new and experienced buyers to purchase this spring, with a major one being the Reserve Bank of Australia’s three rate cuts this year – the first in almost five years – to 3.6 per cent.

As a result, buyers’ borrowing capacity has increased and could rise further, with more cuts expected this year and in 2026.

Then there’s the latest data from the Australian Bureau of Statistics, which shows real wage growth is at its highest in five years while our unemployment rate has stayed at the low 4 per cent mark for four years.

So whether you’re an experienced or a first-time buyer, here are my top tips for you.

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How to buy in a tight spring market

1. Be swift but smart

In the current seller’s market, you’ll likely see homes sell within days of being listed, and for more than their asking price. So be prepared to move very fast. But you should still do your due diligence before buying. Have you obtained pre-approval? Have you checked recent comparable sales? Have you explored the local area and ensured it’s close to the amenities you need, including schools? Have you organised a building and pest inspection and do you have a solicitor or conveyancer on stand by?

2. Ensure your offer is attractive but realistic

With properties selling fast right now, your purchase offer needs to stand out from the crowd. You may also only have one chance to impress the vendor like this, as they know there’s plenty more buyers to choose from if your offer isn’t attractive.

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Buyers need to be swift but smart.

For an auction sale, making a pre-auction offer can be a good idea. If nothing else, it can save you the stress of competing at auction. But again, make sure you’ve done your due diligence and never offer more than you can realistically afford.

3. Consider off-market purchases or other locations

Off-market buying can be a great idea in any market or season but in a seller’s market, expanding your search like this is a smart plan. This type of purchase can be far less competitive than on-site buying – a key factor in today’s very driven market – plus prices can be cheaper. While exploring this option, you should also investigate different locations and property types to your preferred one.

If you’ve been waiting for the right time to buy, this spring may bring the opening you’ve been looking for. Interest rates have eased to their lowest level since April 2023, and improved borrowing capacity means greater opportunity for buyers. And, as long as you do your due diligence, a home is an asset that you’ll never regret.

How to sell in an active spring market

In a strong seller’s market, vendors can sometimes become complacent. With properties in many locations selling within days and enjoying excellent capital growth, often sellers don’t feel the need to attract buyers with a great marketing campaign or stylists.

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Vendors can’t become complacent.

This spring, there’s certainly more confidence from a seller’s perspective. Westpac’s newest quarterly Housing Pulse report this month stated: “Buyers are perking up, price growth has lifted, auction clearance rates are rising and supply is tightening.”

The September Housing Chart Pack backed up this statement.

While the number of national sales listings was down -10.3 per cent in August, compared to a year ago, listing activity rose 9.4 per cent in this month.

“Easing interest rates, rising sentiment and stronger capital gain conditions (are) setting the stage for a cracking spring selling season,” the report noted.

There’s also been three cash rate cuts this year – with possibly more in the future – which has given buyers improved borrowing capacity, while the federal government’s expanded Home Guarantee Scheme will begin on October 1.

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If you market it right the buyers will come.

But none of this means vendors should sit back and relax this spring. You still need to be smart when selling, just as you would in any kind of market. You definitely shouldn’t rely solely on our very active seller’s market to enjoy a swift, high sale.

So, here are my top tips for experienced and first-time sellers this spring:

1. Enjoy growth but retain prudence

In the last year alone, property values in increasingly popular, outer-ring locations have increased in every capital city. For example, house prices in Liverpool in Sydney and Bundamba in Brisbane are up by 6.5 per cent and 12.9 per cent respectively, according to Cotality’s September Mapping the Market report. While this is an excellent statistic for vendors, you still need to be prudent and circumspect in the long run.

John McGrath said buyers should seriously consider buying before selling.

First and foremost, remember if you’re selling, you most likely will be on the cusp of being a buyer again. Your property is not the only one experiencing healthy price rises either, so your excellent capital growth can easily be eroded if you wait too long to buy back in. And for second time buyers, stamp duty can be a nasty shock if government schemes gave you a full stamp duty concession on your first purchase.

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2. Buyers are more informed than ever

Again, it’s not just you keeping a close eye on property data and statistics, especially Reserve Bank of Australia cash rate announcements. Buyers are keen to purchase but they know – or can very easily, soon find out about – comparable sale prices, locations, and other significant property details.

Don’t be fooled into thinking young people have no idea about real estate either. This group is well researched as they are rapidly learning the importance of property ownership, particularly as rents rise across the country, and they can increasingly rely on the Bank of Mum and Dad for help when purchasing.

3. Consider buying before you sell

In a seller’s market, vendors should aim to buy before they sell, as buying is generally more time consuming than selling. You’ll also have a much better idea of your current property’s ideal sale price, as in a perfect world, these funds should cover the cost of your new purchase. As a result, you won’t be left out of pocket after the two transactions.

The post How to buy and sell a home this spring appeared first on realestate.com.au.

First-home buyers across Sydney and NSW are staring down the barrel of a retirement crisis, with many facing the grim prospect of spending their golden years saddled with a mortgage.

That realisation comes as new research shows first-home buyers are getting older than ever before, because of escalating house prices, sluggish wage growth and the gruelling amount of time needed to save a deposit.

Westpac lending data has revealed one in five first-home buyer loans issued nationally over the year to July went to people over age 40.

The bank added that the average age of a first-home buyer across its network had risen to 34, up two years since 2020 – while broker networks put the figure higher at 34–37.

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New data reveals the average age of a first-home buyer had risen to 34

UNSW figures put the average first-home buyer age at 36.

The most popular mortgage across the lending market is 30 years.

Older first-home buyer ages have meant more people with debt closer to their retirement years.

THINGS WERE BETTER BACK IN THE DAY

Previous Australian Housing and Urban Research Institute (AHURI) research showed 54 per cent of 55-64-year-olds and 9 per cent over 65s still had mortgage debt in 2019, up from a respective 18 per cent and 4 per cent in 1996.

Housing experts said the numbers would be higher still today.

It’s a stark departure from previous decades. Back in 1981, the average age at which Aussies were paying off their home loans was 52. By 2015, it was 62 and rising.

These trends have followed warnings from housing experts that the recent expansion of the federal First Home Guarantee scheme may push first-home buyers into debt for longer.

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Natasha (32) is searching for her first home after seven years of renting. Picture: Tim Hunter.

WORTH THE COMMITMENT

Sydney-born Natasha is 32 and has been renting for seven years, in a combination of solo and share housing.

For the past 18 months she has been looking to buy her first property and said the thought of a mortgage is extremely daunting but also exciting.

“During Covid I had to move back into share housing because of the cost of living,” she said.

“I think a mortgage is daunting because it’s a massive commitment, a lot of money and it’s new territory, however, because I’ve been renting for so long I would rather put that money into a property of my own.”

Natasha said as she has moved five times in the last seven years, having a place to call her own is worth the commitment.

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Natasha (32) said having a place to call her own is worth the commitment. Picture: Tim Hunter.

“The reason I’m not afraid of purchasing my first home now and retiring with a mortgage is because I believe purchasing a property is getting your foot into the door of the property market,” she said.

“I see it as a long-term investment.”

A recent buyer aged 35, who wished to remain anonymous, said the search for a home was hard given the price and limited stock.

“Your borrowing money, it always weighs on your mind that potentially you wouldn’t be able to return or make the repayments,” the buyer said.

“There were a lot of thoughts and considerations that we had and it also took a bit of time for us to save up a bit more before we had a comfortable amount entering into a mortgage.”

Selling Agent Jordon Le Breux said there is an impression early to mid-20s would be first homebuyers but he has seen this shift.

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Jordon Le Breux

“I don’t see many younger people at home opens much anymore and if they are, they are with their families or parents who are looking to help them out,” he said.

“Over the last six to twelve months I haven’t seen many first homebuyers and if I do, they fit into that 30 to 35+ age range.”

Mr Le Breux said even in his own social circles there is a fear of a mortgages repayments lasting into retirement.

“I suppose that’s a common fear among younger people, that you buy one home and you’ll be stuck for a long time,” he said.

“I suppose people are aware now that they’ll be paying it off for life.”

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