At a time when Australians are already making do with tighter budgets, the recent increase in interest rates is drastically slowing down the property market across Australia. In fact, Sydney and Melbourne’s markets in particular are experiencing a sharp decline, at -2.7 per cent and -0.9 per cent respectively, according to data published by CoreLogic.
Jarred Holt and Aurora Ricci, respectively an administrative employee at the University of Melbourne and a nursery school teacher, decided to boycott the Australian dream and look elsewhere, preferring Italy over any other potential options in Victoria.
"When our first child was born, three years ago now, we tried looking for a house in regional Victoria, starting with Castlemaine and Kyneton. We weren’t able to buy immediately, so we opted for a rental. Shortly after, the pandemic broke out," Holt recounted.
Plans were postponed, businesses closed, and buyers could only view homes via digital inspection. After participating in several online auctions over Zoom, the only option in the couple's price range remained a two-bedroom house in Castlemaine.
"But in the end, it sold for $50,000 more than the starting price," Holt explained.
"We were depressed, and felt as if we constantly had to save more for the deposit. My wife had lost her job during the pandemic, so we were already pushing our limits. We didn't want to get bogged down with a loan for 30 years, unsure of what might change at the end of the forced isolations.”
The couple soon found themselves overwhelmed by constant questions: “Are we buying at the market’s peak, when housing costs are at their highest? What would happen if interest rates rose?” continued Holt.
“Before the pandemic we were planning to move to the Bel Paese for a year; but faced with repeated difficulties, we thought, let’s do it permanently. We prepared everything and went to the other side of the world.”
Together with their two children, aged three and one, the couple moved to Arezzo, last March. After the initial culture shock and difficulties in dealing with local bureaucracy relating to obtaining a residence permit, the family feels as though they have already integrated into the social fabric of the Tuscan city.
"My wife had warned me about the profound differences between Australia and Italy; I'm still trying to get used to the fact that voices are always overlapping at the table - everyone’s talking at once!”, said Holt, laughing.
“However, I was pleasantly surprised by the many community activities on offer. I love the festivals, the small village festivals. One evening we went to see an outdoor film and close by there was a quaint Celtic festival. Not to mention the family lunches and dinners.”
And while Ricci is already working as an English teacher in a public school and as an educator in a kindergarten, Holt is looking for a job at several universities for foreigners in Florence. After the first few months of adapting to the new lifestyle, the couple are now looking for a house and have already booked in a few inspections over the coming weeks.
“The price range is between $150,000 and $250,000 for large houses in excellent condition, much less if we consider a flat”, Holt explained.
“There is definitely a big difference in relation to the cost of living and wages, but with a six-figure loan plus the deposit, we couldn't afford anything in Australia.”
