Melbourne mortgage broker Nick Rabba argues young Australians aren’t trapped by a cost-of-living crisis so much as caught in a “cost of spending crisis,” pointing to bank-statement patterns showing money being poured into holidays, designer clothes, giveaway m
The deposit fight starts long before the mortgage application — at least, that’s what Melbourne mortgage broker Nick Rabba says he sees every day.
Rabba. who specialises in loans for first home buyers at brokerage firm Inovayt in the city’s inner north. has a blunt explanation for why so many younger clients struggle to get into the market. He argues the country isn’t really facing a “cost of living crisis” as much as a “cost of spending crisis.”.
“[T]here’s no cost of living crisis,” Rabba said, describing what he sees when people hand over their finances. “You see everything. ” he said. explaining that clients’ habits show up clearly in their transactions — including people taking out loans for holidays and what he called a “surprising” amount of men paying for lottery-style giveaway subscriptions.
Rabba says he doesn’t just rely on gut feeling. When using the firm’s software to review financial habits, he enters clients’ bank statements, which he says produces a breakdown of where money is going — similar to what a banking app would show. He also said a manual review sometimes follows.
That process, he claims, reveals spending decisions that undercut attempts to save for a deposit.
One of the biggest examples he raised was giveaway subscriptions — including the type run by billionaire Adrian Portelli, which asks Australians to pay a membership that includes the chance to win major prizes. Rabba said he was surprised by how many people are subscribed.
“I thought it was going to be none, but a lot of blokes my age or in their early 20s, mid 20s, subscribe to that,” Rabba said.
He also pointed to what he described as needlessly expensive convenience habits. In a video calling out the behaviour, Rabba said many people overspend on Uber Eats deliveries and nights out where they spend between $300 and $500.
“You don’t need to be spending $30 on a meal delivered when you can cook it at home for probably $5 to $10,” he said.
Designer clothes, too, is another area he says he keeps seeing — spending that, in his view, doesn’t match the reality of someone trying to build savings for a house.
And Rabba recalled at least one client who took out a loan “near $50,000” for a holiday.
Rabba acknowledged that people should enjoy themselves. “We all have our vices,” he said — but he argued that for those trying to get into the market, the maths is unforgiving.
“If you’re trying to break into the market you need to live within your means, save the deposit [and] then do what you like,” he said.
That message lands as fresh data suggests the broader story may be more mixed than the term “cost of living crisis” implies. Consumer spending remains solid ahead of the RBA decision, with major bank NAB releasing the latest figures for household budgets.
NAB’s data showed consumer spending was up 1.1 per cent in May, reversing an earlier decline in April. Over the past 12 months, spending was up 6.5 per cent.
NAB chief economist Sally Auld told Yahoo Finance the result was “pretty solid all up.” She said the data suggests Australians are still being selective: essential costs like utilities are continuing to climb. big-ticket household purchases remain subdued. but there is room for small discretionary buys.
Discretionary spending increased 2.4 per cent, though Auld said the number was “knocked around a little bit” by travel refunds issued due to the war in the Middle East.
“What it broadly tells you is that as the consumer has the whole way through the Middle East crisis, they seem to be holding in reasonably well,” Auld said.
For first home buyers specifically, Rabba said the market is still busy — but he is seeing vendors drop their prices as conditions soften.
“I’ve seen a lot of properties have reductions, so something’s listed for $900,000 for a couple of months and then it gets pulled down to $800,000 or $850,000. I’m seeing that across the board,” Rabba told Yahoo Finance.
He expects the next phase could offer an opening. Rabba predicted the rest of the year will likely be a strong buying window for first home buyers, arguing that some investors are waiting for certainty while interest rates remain elevated.
“I reckon the next six to 12 month window will probably be the best some first home buyers will ever see. because I think if rates start to come down at the end of this year. maybe early next year. then we’re going to see what always happens — people rush back into the market and then prices just increase. ” he said.
Nick Rabba mortgage broker Inovayt first home buyers cost of living crisis spending habits giveaway subscriptions Adrian Portelli Uber Eats NAB consumer spending RBA decision Melbourne