New buyers with good money who can afford to buy a home

Most first home buyers didn’t want to see Jacob Mulcahy and Callie Abrahams coming.

A young couple from Brisbane, both aged 26, are among a group of under-35s looking to break into the property market – but they have an advantage.

While most twenty-somethings still live at home and earn the minimum wage, Jacob and Callie both earn around six figures each, have full-time jobs and are living their best lives renting an inner-Brisbane apartment.

They hope to buy a house before the end of the year and have a budget of about $1m.

Jacob Mulcahy, 26, and fiancee, Callie Abrahams, 26, in their inner-city home. Photo: Liam Kidston.

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“We’re in really good shape,” Jacob said. “But the pressure is still there.

“Our borrowing capacity will only be around $1.1m, so we have to face the decision of living further away or moving to an older, less suitable place.

“In terms of the deposit, we will have to put down all our savings, about $150,000 to $200,000, plus stamp duty and other fees.”

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The couple is also getting married in April, which will further eat into the savings.

“If the prices keep going up, it’s a fear of going down,” said Jacob. “Even if you spend another year or two saving for a deposit, you’re still behind.”

“But, we’re lucky. Callie bought a townhouse in April 2020, so we have that equity option.”

Jacob Mulcahy, 26, and fiancee, Callie Abrahams, 26, in their inner-city home. Photo: Liam Kidston.

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It comes as new research suggests a small group of high-net-worth, high-earning under-35s could be driving up house prices in the Brisbane market.

Analysis by Stop Renting Australia reveals that Queensland’s highest-income youth are concentrated in Brisbane’s suburbs and mining towns, creating smaller markets where six-figure salaries before 35 are out of reach – and where first-home buyers on average incomes cannot compete.

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Millennial Wealth director Rob Creaton, whose clients are mostly young, high-income professionals, said many preferred to live in a rental in inner Brisbane and buy an investment property further afield.

Brisbane’s wealthiest under-35s live in inner-city areas such as Newstead and Bowen Hills, new research has found. Photo: Glenn Campbell.

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“That’s when they decide to buy a house to live in, or focus on renting, which is very common,” said Mr Creaton.

“You can still live an inner-city life, but you’ve got your foot in the door in a property market somewhere you wouldn’t want to live, like Ipswich or Toowoomba.

“Even if you’re a couple earning $200,000 to $300,000 together, it can be difficult to buy within a 5km ring of Brisbane.”

Callie and Jacob, who are also Mr. Creaton’s clients, are different.

“We thought of putting our money in something that we could rent because at least we can enter the market,” said Jacob.

“I think because we want children, it’s a classic decision to move to the suburbs and buy a house.”