A Sydney woman in her 30s said property ownership is fast getting out of reach for her. (Source: TikTok) <\/p>\n
An Australian with a few hundred dollars in her account<\/a> has hit out against advice to spend less on unnecessary things like avocado on toast<\/a> to crack into the property market<\/a>. This suggestion has been slung from older Aussies and millionaires<\/a> to those desperately searching for a permanent roof over their heads.<\/p>\n The adage hinges on the false idea that if you cut out that weekly $14 cafe staple<\/a>, then you would easily have enough money to buy your first home<\/a>. But a 30-year-old Sydneysider said this is such a flawed argument.<\/p>\n “That’s not the reason we can’t afford a house<\/a>. It’s because the market is insane,” she told property app Coposit.<\/p>\n She said the current cost of living has been so “exhausting” recently because she never has enough money to give her financial breathing room.<\/p>\n “There always seems to be another bill. There always seems to be another random surcharge, [or] percentage added to anything,” the woman said.<\/p>\n Do you have a story? Email stew.perrie@yahooinc.com<\/p>\n “Groceries are so ridiculously expensive, and they seem to just continue to get more expensive, regardless of when you purchase them or how little you get.”<\/p>\n With only between $100 and $200 in her account, she said homeownership is far out of her reach at the moment due to how fast property prices are rising.<\/p>\n A poll of more than 2,000 Yahoo Finance readers found 58 per cent felt it was impossible to save up enough money to keep pace with the market.<\/p>\n Do you have a story? Email stew.perrie@yahooinc.com<\/p>\n According to recent figures<\/a>, home prices across the country hit a national record in July.<\/p>\n They are now 4.9 per cent more expensive than they were this time last year, which is roughly $39,000 higher.<\/p>\n The national home price sat at $827,000 last month, which was a 0.3 per cent jump from June.<\/p>\n That’s despite the Reserve Bank of Australia (RBA) deciding to hold interest rates<\/a> at its July meeting at 3.85 per cent.<\/p>\n REA Group senior economist Anne Flaherty said limited housing supply is still keeping demand high and that means buyers are willing to pay more to get the keys to their castle.<\/p>\n \u201cWhile the number of homes for sale has slowed over winter, buyer demand remains strong, with auction clearance rates sitting at the highest level in more than two years,\u201d she said.<\/p>\n Story Continues <\/p>\n \u201cHome prices are expected to break into new territory later this year, with further interest rate cuts expected to add momentum to price growth.\u201d<\/p>\n Domain modelling<\/a> found if the cash rate fell by 1.5 per cent by early 2026 from 4.35 per cent, which is what Westpac<\/a> is predicting, the median house price for the combined capitals could jump by $141,000 to $1.32 million next year.<\/p>\n Competition to buy<\/a> has been escalating since the RBA cut interest rates for the first time since 2020 in February this year.<\/p>\n That was followed by another cut in May, and the Board is largely tipped to cut again next week<\/a> at its August meeting.<\/p>\n According to StandOut Resume<\/a>, a person living in Sydney on the average wage with average living expense would have around $16,989 saved at the end of the year.<\/p>\n That’s based on no holidays, little to no social dining or drinking, no children, and no sudden expenses.<\/p>\n Under those standards, it would take nearly 2.3 years to save up $39,000 to account for that increase in property prices in the last 12 months.<\/p>\n But if certain predictions come true, prices could go up even further, making homeownership an increasingly out-of-reach goal for many.<\/p>\n Considering a $14 weekly avocado on toast would only work out to be $728 for the year, it’s clear that wiping out little expenses like that aren’t the golden ticket to buying a home for some.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n