UK could introduce 50-year mortgages

One in three first-time home buyers are blowing their budget, singles are spending nearly $400 a month looking for love, and real estate listings are at their highest since 2011. Here are five things you might have missed this week.

Budget Blast: One in Three First-Time Homebuyers Exceed Their Limit

Across the country, first-time home buyers are spending more than expected on their new home.

Finder’s First Home Buyer Report 2022 shows that more than a third of recent first-time home buyers (37%) have blown their budget – in some cases by six figures.

Almost one in 10 first-time homebuyers (8%) paid more than $100,000 over their budget. Another 8% paid between $50,000 and $100,000 more.

Only one in five managed to buy below their planned budget.

Finder’s Sarah Megginson says part of the problem is that house prices can be understated to entice buyers.

She explains that undercutting is illegal, but adds: “It happens, especially in the case of auctions, where undercutting prices can attract more buyers and lead to a bidding war.”

Spending more than expected can put buyers in a difficult financial situation, especially if it means having trouble getting approved for a loan. Having a pre-approved home loan can be a useful tool for establishing — and sticking to — a buying budget.

Singles spend $43 billion a year on dating, four times more in five years

The growth of dating apps sees singles spending $384 a month in pursuit of romance according to new research from ING.

Total spending on finding true love has nearly quadrupled from $11.7 billion in 2017 to $42.8 billion in 2022.

ING says the average single person goes on three dates a month, down from just one in 2017, with an average monthly dating spend of $384.28, up from just $153.93 five years ago.

The price of dates goes beyond a few drinks and a meal to include a variety of popular pre-date expenses, including new clothes, hair services, and new shoes.

Matt Bowen, head of day-to-day banking at ING Australia, said: “Over the past few years, the growth of dating apps has opened up a new world of possibilities for singles looking to find love. These results show that Australian singles are investing more in their love lives as a result.”

He adds, “Not only are we going on more dates, but we’re also spending more on those less-considered costs like app subscriptions, pre-date beauty regimens, or gifts.”

Bowen notes that love doesn’t have to cost the earth.

He suggests strategies like “getting outdoors and enjoying all that nature has to offer for free,” as well as searching the web for restaurant deals or choosing places with happy hour savings to cut back. meeting costs.

The real estate market is experiencing the busiest winter in a decade

Winter is traditionally a quiet season for the real estate market, but not this year.

The latest PropTrack Listings report from REA Group, owners of realestate.com.au, says new listings rose 8.5% nationally in June compared to the same month last year, putting made the busiest start to winter since 2011.

PropTrack economist Angus Moore said the wave of new deals hitting the market, particularly in Sydney, Melbourne and Canberra, will help “put more downward pressure on prices”.

Regional areas are bucking the trend, with the total stock of homes available for sale outside our major cities still 40% below pre-pandemic levels.

Motorists warned of roos thugs

Skippy might be an adorable icon, but he’s not so cute when he’s just landed on the hood of your car.

Insurer AAMI says winter is the peak time for animal collisions, and it turns out kangaroos are the biggest culprit in bingles, responsible for as many as 8,000 car claims a year.

For the average commuter driver, hitting a roo might seem like an unlikely event. But as ski enthusiasts head for the mountains, now’s the time to be on the lookout for Skippy – especially if you’re planning a break in Canberra, which the AAMI says is the hotspot for skiers. collisions with local animals.

The AAMI reminds motorists that comprehensive car insurance can provide protection if you strike an animal, but Compulsory Third Party Damage and Liability (CTP) insurance will not cover damage to your vehicle as a result of an incident.

Hey kids, do you like inheriting the mortgage?

Faced with a housing affordability crisis similar to ours, the UK government is considering introducing 50-year mortgages to help more Britons buy a home.

Britain’s Times newspaper reports that these very long-term mortgages could be passed on from generation to generation, although it’s hard to see adult children getting excited about inheriting a home loan.

While a 50 year loan term can dramatically inflate the overall interest cost of a loan, high property values ​​see mortgage terms lengthen here in Australia.

The once-standard term of 25 years is reaching 30 years, and a number of lenders are already offering 40-year home loans, including AlphaBeta Money, BCU, G&C Mutual Bank and Australian Mutual Bank.

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