Young Couple Face Reality Of Purchase

Newcastle Herald

Wednesday February 6, 2008

By IAN KIRKWOOD

DAVID Hardes and his partner Jessica Bartle are saving the deposit for a first home.

Mr Hardes, 24, is a metal fabricator while Ms Bartle, 20, works in a call centre.

Living in a Gateshead rental property, the pair have been together for two years and have saved about $5000 in the year or so they have been seriously watching their pennies.

Ms Bartle is determined they will find a property sooner rather than later, but Mr Hardes says that yesterday's sixth consecutive rise in interest rates would inevitably make things harder.

"The interest rates themselves might not be that high but the actual amount of money and the amount you have to repay is still pretty big," he said. "It can a bit disheartening at times."

Ms Bartle says her parents bought their ex-public housing property about seven years ago, and she believed that watching them struggle during her childhood was an influence in her decision to want to buy a house as soon as possible.

Mr Hardes said banks would lend him about $170,000 on his own, or $370,000 with Ms Bartle.

Real estate agent and valuer Steve Owens says the best advice to would-be home buyers is "don't be scared".

"Whatever is happening now is a temporary hiccup; property will always hold its value in the long-term and as far as Newcastle is concerned, I expect prices to pick up again this year," he said.