Australian prospective first home buyer stunned to find property valued at $169,000 Then she looked inside

An Australian potential first-time buyer got a rude awakening at the state of the country’s property market when she discovered a home listed for $169,000 was too good to be true.

South Australia resident Jess said she was eager to buy her first property and “home-buy” when she stumbled upon what appeared to be an affordable option.

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The three-bedroom, one-bathroom Elizabeth North home is listed for $159,000-$169,000, and Jess says she saw potential when she looked at the derelict yard.

“I really can’t afford anything, but I look at this house and I’m like, ‘Wow, that’s really cheap. I can actually do this,'” she says in a TikTok video.

“Painting the fence, grass seed, plants and flowers…I could do that.”

But her dream of owning her own home was quickly dashed when she looked at photos of the home’s interior.

“There are no words,” she says, while showing photos of the dilapidated rooms with peeling ceilings and dust on the floors.

The property is described as a ‘home with partial fire damage’ listed at a price reflecting the need for repairs.

“Opportunity for home renovators, real estate investors and/or bargain hunters looking for ‘Fixer Uppers,'” reads the ad.

The ad said the home was “priced for immediate sale” and had “virtually real estate value at this bargain price.”

For Jess, realizing that the only property she can afford is a fire-damaged house is a depressing example of the tight real estate market.

While Australian renters face stiff competition across the country, sky-high rents have yet to trigger a rush for new homes.

High demand and low supply pushed rents in major cities up 10 percent in the 12 months to December.

But while the market experiences a supply-demand mismatch, renters aren’t switching to owner-occupied homes instead.

New home loans fell 3.7 percent in November, continuing their downward trend from record highs in the first half of 2022.

Data from the Australian Bureau of Statistics shows lending to both investors and first home buyers during the month.

As house prices fall, higher interest rates make borrowing more expensive, and prices still remain well above the pandemic trough.

“Even though house prices are falling and rents are rising, in most cases it’s significantly cheaper to rent than pay off a mortgage,” said Cameron Kusher, director of economic research at PropTrack.

– With AAP