Million-dollar first home

On one of the biggest auction days Sydney and Melbourne have seen came more evidence of the grim truth facing Australia’s young home buyers: in our inner cities, there’s often little hope without parents’ help.

With sellers encouraged by rising prices, Australian Property Monitors said 693 auctions were scheduled for Sydney and a whopping 1356 in Melbourne. The number of properties going under the hammer was up more than 30 per cent on last year in both cities.

On Saturday, Sydney saw a clearance rate of 83.2 per cent while Melbourne recorded 76.9 per cent.

In red-hot inner-city Surry Hills, first-home buyer Claudia Crause, 23, a student at the University of NSW, snapped up a two-bedroom terrace at 45 Rainford Street, Surry Hills, for $1,094,000, $119,000 over the $975,000 reserve.

‘‘The market’s a bit hot at the moment. There’s a lot of people wanting terraces with potential,’’ she said.

‘‘Prices are going up ... I think we got a pretty good deal.’’

Parents Ron and Theresa Crause, of the lower north shore, were happy to help.

‘‘We knew we had to contribute and try and make this happen for her,’’ Mr Crause said.

‘‘Even though the market is hot, I don’t think it’s going to get any easier in the future.’’

Mrs Crause chipped in: ‘‘There are a lot of foreign buyers coming in ... it helps us with not having to pay the rent because she’s a full-time student and it gives her an opportunity to get a foothold into this market, which is very high.’’ Ray White Surry Hills agent Teresa Natoli said she had noticed more parents helping their children buy in the inner city in the past six to eight months.

‘‘The kids are coming first and if they like it, they bring their parents to have a look at it after,’’ she said. ‘‘The market is a bit harder, so the parents are there to give them that little bit extra if they need it.’’

The owner of 45 Rainford Street, film producer Emma Hay, who now lives in London, paid $107,000 in 1986.

The underbidders at the auction were a young couple who were taking instructions over the phone. They were engaged in a duel with Mr Crause, in which $1000 bids were flying between the two parties.

There had been 10 contracts issued and seven registered bidders, with four taking part.

Meanwhile, at a three-bedroom Federation semi at 12 Horton Street, Marrickville, young Randwick couple Anil Lambert and Lucy Clynes, with their four-month old son, Louis, paid $890,000, which was $10,000 above the reserve price.

‘‘It’s expensive, and it’s a hot market,’’ Mr Lambert said.

‘‘But I’ve seen worse ...  this is the best value we’ve seen out of other auctions we went to.’’

Ray White Glebe agent Elaine Fitzpatrick said several potential buyers had pulled out at the last minute, fearing the property could go up to $1 million. “There is a fear factor about the heat of the Marrickville market,’’ she said.

After 100 inspections and eight contracts issued, there were four registered parties. They were young couples and families from the inner west, east and lower north shore who wanted to upgrade from units.

The owners, Lyla Rogan and Steve Darvill of Canberra, who bought the property in 1996 for $110,000, said they were pleased with the result but had high hopes due to the strong market.