Six-figure salaries: The 20-somethings you don’t want to bid against

Most first homebuyers wouldn’t want to see Jacob Mulcahy and Callie Abrahams, coming.

The young Brisbane couple, both 26, are among the pool of under-35s looking to get into the property market — but they have an advantage.

While most twenty-somethings are still living at home and earning the minimum wage, Jacob and Callie both have six-figure salaries.in full-time jobs and are living their best lives renting an inner Brisbane apartment.

They are hoping to buy a house before the end of the year and have a budget of around $1.5m.

Jacob Mulcahy, 26, with fiancee, Callie Abrahams, 26, in their inner-city appartment. Picture: Liam Kidston.

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“We are in a really good position,” Jacob said. “But, the stress is still there.

“Our borrowing capacity is only going to be around $1.1m, so we have to face the decision of living further away or settling for an older, less ideal place.

“Deposit-wise, we would have to put down all our savings, which is 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 savings.

“If prices keep climbing, it’s the fear of being priced out,” Jacob said. “Even if you spend another year or two saving for the deposit, you’re behind.”

“But, we are fortunate. Callie did buy a townhouse in April 2020, so we do have that equity option as well.”

Jacob Mulcahy, 26, with fiancee, Callie Abrahams, 26, in their inner-city apartment. Picture: Liam Kidston.

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It comes as new research suggests a young cohort of cashed-up, high-earning under-35s could be driving some of the home price rises in the Brisbane market.

The analysis by Stop Renting Australia reveals the highest-earning young Queenslanders are heavily concentrated in inner-Brisbane suburbs and mining towns, creating micro-markets where six-figure salaries before 35 are no longer rare — and where first-home buyers on average incomes can’t compete.

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Millennial Wealth director Rob Creaton, who has a large client base of young professionals earning high incomes, said many were preferring to stay renting in an inner Brisbane suburb and buy an investment property further away.

Brisbane’s wealthiest under-35s live in inner-city suburbs like Newstead and Bowen Hills, new research has found. Picture: Glenn Campbell.

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“They’re at that point where they’re deciding whether to buy a home to live in, or shift their focus to rentvesting, which has become super common,” Mr Creaton said.

“You can still live have the inner-city lifestyle, but get a foot in the door in the property market somewhere you might not want to live, like Ipswich or Toowoomba.

“Even if you’re a couple earning $200,000 to $300,000 combined, you’d be hard pressed to buy within Brisbane’s 5km ring.”

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

“We did consider putting our savings into something we could rent out because at least then we’re entering the market,” Jacob said.

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