A Central Coast first homebuyer has felt the full sting of the Banking Royal Commission after it took him more than four months to receive approval on a $49,000 home loan.
Architecture student Mitchell Wright purchased an odd-shaped triangular block of land in Bateau Bay last year for just $70,000.
The 29-year-old snapped up the block at a hot auction that involved six registered bidders. The auction sale price exceeded the reserve by 40 percent.
Mr Wright, who is interested in Environmental Psychology, was excited to take on the project as his PHD project, with his main aim to build something for his own health and wellbeing.
But after the high of winning the block at auction, he was soon thrown into a situation that he describes as the most stressful time in his life.
“I was finishing my masters during this time, but this was on another level,” he said.
“It is all a blur to me now — I just remember being relieved then stressed and it was on repeat.”
Despite the fact that Mr Wright had a 30 percent deposit, no existing debt and minimal spending against his name, his loan application was declined on multiple occasions.
He said that his biggest hurdle was the valuation report — valuers claimed that there was no enough ‘security’ on the block, due to its unusual shape and size.
But some would argue that a rare property like this would always attract the bargain hunting first homebuyer market.
“Cheap land on the Central Coast doesn’t pop up very often for a young person, and for me, the constraints of the block were a catalyst for creativity,” Mr Wright said.
“I would have conversations with staff members who understood my position, but couldn’t do anything because of the Banking Royal Commission.
“At the moment the brokers are made out to be the baddies in the industry, but in my case, that could not be further than the truth. My broker James Wood at Leading Broker was on top of everything and knew all the ins and outs — I couldn’t have got this loan without him.”
Relieved at finally having received approval, Mr Wright is now focusing on creating his plans to submit a DA to council, and hopes to move onto the site to build his dream home in 2020.