Jo Raphael: Housing market is tough but don't be put off

Photo / Getty Images

OPINION

I know what it is like to feel the pressure to buy a house.

To feel the urgency, the stress and the eventual relief when you're handed the keys.

I bought my house in 2017. I viewed the house and made the offer pretty quickly afterwards.

It was a multi-offer situation but mine was accepted because I had the right conditions.

However, the house I eventually bought was the second attempt – the first deal crumbled at the 11th hour - there were just too many issues we couldn't resolve.

When the deal fell through, I was gutted.

I chalk it up to experience. Although my banker and lawyer were helpful, there were a lot of things I just wasn't aware of.

However, it made me more prepared the second time around, and I had learned a few tips - the big one being that I didn't get my hopes up.

I viewed it as a business transaction and I would keep looking if the deal fell through.

Happily, the stars aligned and everything fell into place to secure the second house.

But I think I'm one of the lucky ones.

We reported last week that more buyers are having offers fall through for many reasons including low amount of housing stock, difficulty securing finance from banks, and the huge amount of competition in the market despite having all their ducks in a row.

One property recently had 11 offers on it and it was the fourth contract in place that got it.

Experts are saying banks are applying their lending criteria more strictly - including looking more closely at builders' reports and also scrutinising people's job security post-Covid.

Although this is good practice for banks, it makes it harder for those wanting to get on the property ladder.

Getting pre-approval may not be enough, with banks sometimes declining finance when an application is made.

Simon Anderson, managing director of Realty Group Ltd, which operates Eves and Bayleys, says offers that are subject to finance have always been a challenge but buyers who are well prepared and organised are seeing success.

"There is also the pressure of other buyers putting in offers, so some buyers are going in quick without being properly prepared."

My advice to first home buyers is try to pay down debt that might hold you back, do your research, ask lots of questions, talk to your banker or mortgage broker – that's what they're there for, and be prepared for disappointment.

But don't be put off, you will get there – eventually.