Outlook gloomy for FHB deposits

by Adam Smith28 Nov 2011

More than a third of renters don't believe they'll be able to save a deposit anytime soon, and close to half believe they'll have to find a better job to afford property.

An ING Direct survey has revealed only 21% of prospective first homebuyers believe they will be able to save a deposit within the next three years. Of those who are renting or do not already own a home, 36% indicated there was "no way" they would be able to save a deposit in this timeframe. Forty-one per cent said they would have to find a better job or even take on a second job in order to save a deposit.

Potential first time buyers living in capital cities showed even less prospect for saving a deposit, with only 13% saying they could do so within three years. This is less than half the proportion of regional first homebuyers.

The poll also revealed disparity between high income earners and low earners. Forty-one per cent of respondents with household income of more than $100,000 expected to be able to save a deposit, as compared to only 8% of those with household income below $40,000.

A recent Loan Market survey also highlighted the difficulties faced by prospective buyers trying to save for a deposit. A survey of the company's brokers indicated an overwhelming 77% had seen first homebuyer deals scuttled most often due to the lack of a suitable deposit.

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