A family of four managed to buy a house in Wavell Heights with a deposit of just $50,000 after months of struggling to secure a home in Brisbane’s competitive property market.
The Mishra Family’s Journey
Kishore Mishra and his family migrated from Dubai to Australia, seeking a better education for their children. They quickly discovered the local housing market was more challenging than they had anticipated.
Despite their efforts, they faced constant setbacks, often losing out at auctions that far exceeded their budget.
Mr Mishra, a project manager in the energy sector, was able to migrate under a global talent visa. He noted that Australia’s auction culture vastly differed from what he had experienced in Dubai. His family had been renting an apartment in Clayfield but found restrictions, especially for their children, which made them eager to own a home.
After months of searching, they finally found a property in Wavell Heights. The $50,000 deposit, however, only covered 5 per cent of the purchase price.
In addition, to satisfy the lenders, they needed to show an additional 4 percent, or roughly $40,000, in their bank account. Mr Mishra and his wife, both engineers, were able to meet these financial requirements thanks to their dual incomes.
Housing Market and Financing Tips
While securing a home with a 5 per cent deposit may seem daunting, property experts say it’s still possible in parts of Brisbane. According to Canstar’s analysis, certain areas still offer homes where buyers can make a 10 per cent deposit of around $50,000. The analysis did include apartment units, but securing houses with smaller deposits is not unheard of.
LJ Hooker St Lucia agent Eddie Singh confirmed that Queensland government schemes allow for deposits as low as 2 per cent for first home buyers, with some lenders offering loans with deposits between 5 and 10 per cent. He added that some lenders may also waive Lenders Mortgage Insurance (LMI) premiums, which can significantly reduce upfront costs for buyers.
Mr Singh suggested that first-time buyers focus on creating a budget and saving consistently.
“If your deposit is limited but your income is strong, a guarantor loan is another option,” he said. He also advised working with a mortgage broker to explore different loan packages and government schemes available to potential buyers.
A Long-Term Plan
Although the road ahead to pay off the mortgage will be long, the Mishra family are committed to making their new home in Wavell Heights a permanent one. They believe Australia offers better education opportunities for their children compared to the UAE, and they look forward to building a sense of community with their new neighbours.
The Mishra family’s journey highlights the importance of persistence and careful financial planning, showing that homeownership, even in competitive markets, is achievable with the right approach.
Published 10-Sept-2024
