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How our Assemble Futures housing concept is helping to weather the property market’s unpredictable price rise storm
2020 was touted as the most unpredictable year on record and the aftermath of the pandemic-ridden year has delivered yet again. With a recession initially expected and many anticipating an easing of the property prices, home buyers have been met with an unexpected turn of events with house prices surging past pre-COVID conditions.
The major banks including CBA have declared Australia is on the “cusp of a housing boom”, which has forecast house prices will skyrocket by a massive 16% over the next two years.
Property values have also reached new heights in February, with data provider CoreLogic noting values grew at their fastest rate nationally in 17 years, with Melbourne’s values rising 2.1%. This is the most significant month-on-month increase since 2003.
What does this mean for a first-time buyer, trying to get their foot on the property ladder? Unfortunately, it has made home ownership further out of reach.
Assemble’s resident Financial Coach, Sarah Matzouranis said price rises have been driven by various factors such as historically low interest rates and Government stimulus including HomeBuilder and stamp duty concessions.
“Although it appears we have an environment that’s making it easier and cheaper to buy than ever before, it has actually made it more competitive for buyers – if they feel they can borrow more from the bank, they generally will and this can often drive up property prices.”
“However, this does not address affordability as the goal-posts keep shifting. Many of our future residents have described how challenging it can be to save for their home deposit to then find themselves in a position where prices increase and they never have enough to secure their dream home,” said Sarah.
Sarah said that many future residents have selected an apartment at 15 Thompson St. Kensington as Assemble Futures addresses the very real challenge of home ownership in Australian cities, bridging the gap between renting and owning your home.
“The idea is simple, you rent your home, while you save to buy it. Your rent is agreed up front and your purchase price is fixed when you sign up, giving you stability while you save, and the freedom to leave if life takes you elsewhere.”
“This is a financial coach’s dream – my clients have a set goal, and they can work towards achieving it,” added Sarah.
Assemble is, and always will be about its residents and providing better quality, thoughtfully designed, sustainable homes, that are more accessible to more people.
Future resident at 15 Thompson St. Kensington, Efe Ozyaba has secured a two-bedroom and two-bathroom apartment in the community.
Efe said he was attracted to the supported approach to home ownership, including the free financial coaching support offered by Assemble which will be offered throughout his rental period.
“I am definitely interested in financial coaching sessions and plan to attend every single one of them.”
Efe explained that Assemble Futures offers a patient approach, allowing him lots of time to save while he rents. He has also considered subletting his apartment through the lease to fast-track his savings and secure his deposit sooner.
“If I went to my mortgage broker today and asked if I could borrow as a first home buyer, they would probably laugh in my face, however, in seven to eight years of time, not so much! It gives you more time to save and enjoy your apartment without having to stress about what the housing market may or may not do.”
“I love how easy and efficient apartment living is. The quality of the apartment was the single most important element in my decision to apply at 15 Thompson St – the rooftop design is just awesome,” said Efe.
Interested in learning more?
Contact our Relationships team at [email protected].