“The government’s support for first-time buyers needs to be totally revisited, we’re the worst in the whole country.
Real estate agent Peter Travlos

Having been outbid eight times Maria Contopoulos isn’t happy. Since March, she and her partner David have been looking to buy their own home, but with Melbourne house prices spiralling, there’s every chance their dreams will continue to be dashed.
Both are in full-time white-collar employment. Maria (26) is an OHS advisor; David is an engineer.
Their story is that of thousands of young achievers who are finding it virtually impossible to buy a house in Victoria’s capital.
And their situation isn’t helped by meagre subsidies on offer to first-time buyers from the state government – which offers concessions on stamp duty only for properties up to $600,000.
By default, with increasing prices, the scheme rarely applies in practice for those buying houses anywhere other than the outer suburbs – with prices in areas of high demand soaring way above the threshold.
Head out 30kms and the concession comes into play, but forget the city, being near mum and dad, and the community that you know.
Along with the Victorian Government’s recent abolishing of First Home Owners Grants – worth up to $10,000 – to buyers of anything other than newly built homes – the state has precious little support to offer buyers like Maria and David.
They’ve set their sights on a house close to family in Melbourne’s north-east – nothing too fancy, with a yard perhaps for their future kids to play in – as they did 20 years ago.
Maria says they’re trying to avoid buying an apartment.
“We don’t like the idea of dense living, we want a house because we want to start a family one day,” says Maria. “We’re used to having a house with a backyard. It’s what we know.”
Ideally they want to buy around Ivanhoe, but with its median house price of $980,000 (almost double the average median house price for Melbourne of $595,000) – nearby areas like Heidelberg Heights and Viewbank are more realistic for their budget.
Maria’s noticed prices increasing sharply since they began their search eight months ago, and its a process that’s taken a toll on their lives.
“Our Wednesday and Thursday nights – every week – are spent doing house inspections. It’s quite demotivating.
“There were times when we just gave up, but then we jumped back in because prices aren’t getting any cheaper.”
Through July and September median house prices in Melbourne increased by nearly nine per cent – reflecting Maria’s experience, and while low interest rates benefit buyers, for Maria and David, it’s not a factor that makes much difference.
“At the end of the day interest rates have nothing to do with the price you’re paying on the day,” she says.
Meanwhile Maria and David will keep on looking – their fortunes decided by the unavoidable equation of supply and demand.
“There’s an auction coming up in two weeks that we’re keen on,” Maria says, “but we went to the inspection the other day and there’s another 40 people interested.”
Real estate agent Peter Travlos -who has been advising Maria and David in recent months – told Neos Kosmos that their plight was increasingly common – and the state should be doing more for buyers like them.
A review of its threshold for stamp duty concessions he believes is long overdue.
“When the median price range in many areas is over $600k what’s the point? It’s not sufficient and it’s a flaw in the system.” said the Ray White Taylors Lakes’ agent.
“The government’s support for first-time buyers needs to be totally revisited, we’re the worst in the whole country.
“There needs to be a review of stamp duty altogether and we should come into line with other states. In Queensland stamp duty’s nearly half the price.”
With Melbourne accounting for 50 per cent of all property auctions in Australia, and the city’s population increasing by 100,000 every year – Mr Travlos’ advice for buyers is simple: give it everything you’ve got.
“Don’t hold back, run in with your maximum as early as possible. Once you let competition fester on an auction, you’re limiting yourself from buying.
“As time goes on it will be harder and harder. My advice is get into the market, but don’t expect it to be your dream home today, but above all get in – if you want your dream home tomorrow.”