Melbourne family forced to sell dream home amid rise in interest rates
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Family who don’t want to ‘eat baked beans every night’ is forced to sell the dream house they built for seven years thanks to sky-high interest rates
- Celeste Andrews is forced to take family home in Avondale Heights, VIC. to sell
- She and her husband designed the house for seven years and moved in in 2020
- Rising interest rates meant the family of four had to change their lifestyle
- Since then, they have marketed their home with a $1.25 million price guide
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A family with two young children has been forced to sell the dream home they’ve built for years after struggling with skyrocketing interest rates.
Celeste Andrews recently marketed her four-bedroom home in Avondale Heights, northwestern Melbourne, with a price guide of $1.15 million to $1.25 million.
The family had spent seven years planning to build the house and had only moved in two years ago.
But six consecutive monthly increases in the out-of-pocket rate, which hit a nine-year high of 2.6 percent since Tuesday, meant Mrs. Andrews and her family had to make major lifestyle changes.
“We can still pay the interest, but what compromise will it be for our family, so it was more like our hand was forced,” said the mother of two. 7 News.
Celeste Andrews has marketed her four-bedroom home in Avondale Heights, northwestern Melbourne, with a price guide of $1.15 million to $1.25 million
“Ideally we don’t want to sell, but we don’t want to eat baked beans and spaghetti every night and not go anywhere.
‘We want to take our children on vacation and travel.’
The RBA’s 0.25 percentage point increase on Tuesday was less than market expectations of a 0.5 percentage point increase.
But the ANZ bank said the smaller RBA hike would simply mean that rate hikes will continue into 2023 rather than end in 2022 during this monetary policy tightening cycle.
David Plank, ANZ’s chief of Australian economics, has updated the bank’s forecast to see the Reserve Bank’s cash interest rate reach an 11-year high of 3.6 percent by May 2023.
The family had spent seven years planning to build the house and had only moved two years ago
Ms Andrews said she didn’t want to sell but ‘our hand was forced’
Ms Andrews’ real estate agent David Gigliotti, of Moonee Valley Real Estate, said he knew of other families considering selling given the cash interest rate hikes.
“There’s definitely a taste of people that it’s all getting a bit too much,” he told Daily Mail Australia.
He said Andrews’ house was designed by them from the start and the family had no intention of selling.
“They’ve put everything into it, it’s what they dreamed of, so it’s a bit of a sad time for them,” he said.
“They don’t want to sell, they have to.”
He said the house had already generated a lot of interest, with 47 people attending the open house before it goes up for auction on Oct. 22.
Avondale Heights’ house will be auctioned on October 22
“Whoever buys it will be able to enjoy a house that has had a lot of thought and effort put into it,” said Mr Gigliotti.
The real estate agent advised people in similar situations to stay at their home ‘as long as you can’.
“But ultimately, if it affects your quality of life, selling may be the only option,” he added.