Mildura's first home buyers have higher expectations than in the past: HTW

Home ownership in Mildura is still a realistic goal, with the median house price being around $260,000 and $180,000 for units.

Herron Todd White said in a recent report that families and older couples make up the largest percentage of people living in Mildura.

The majority of buyers in Mildura are owner-occupiers.

Statistics from Corelogic show the average time a home in Mildura is held is around eight years, which supports the theory that many buyers gradually trade their way up from entry level homes to better standard homes as their financial circumstances improve.

Over the past 10 years, first home buyers have shown a willingness to take on more debt in order to acquire more expensive first homes.

"No doubt the low interest rate environment has contributed to this confidence, however it appears that many first home buyers have much higher expectations than previous generations," wrote HTW.

"Most first home buyers in Mildura are looking for modern detached dwellings in better locations and will typically spend from $280,000 to $350,000."

The presence of attractive first home owner grants has made building a home an attractive option for many young people.

"Currently there is $20,000 available to first home buyers who build a home in Victoria and $10,000 in NSW, which when combined with the stamp duty exemptions currently available make this attractive for many people.

"We note however, that the cost of land and building has increased in recent years by at least this amount, making this option less attractive than it once would have been."

As an example, a three-bedroom house at 40 Golden Ash Drive (picture above) sold recently for $320,000 through Ray White’s Luke Hermans.

Another recent sale was a four-bedroom house at 281 Eighth Street for $256,000, (below) close to the median house price.

The HTW report noted that townhouses and units are mostly being purchased by either investors or retirees, attracted by the lower maintenance requirements.

"There has been a trend in the past five to ten years for many empty nesters to move from their large family homes to new townhouses on compact lots."

The development of around 70 residential lots within part of the Mildura golf course has met with strong demand from this buyer segment who are typically spending between $450,000 and $650,000 to acquire good standard housing on lots of around 500 square metres, HTW advised.

Buyers in Mildura still have a preference for detached dwellings and the relative affordability of land makes this possible.

"Our constant theme is that owner-occupiers (and tenants) always show a preference for homes which have functional outdoor living areas designed to be shaded in the summer months.

"Mildura has long, hot summers, and the ability to spent time outdoors is an important consideration for home buyers," it added.