New research shows how long it takes for a first home buyer to save enough money for a deposit for a median-priced unit.
According to Ratecity.com.au, Sydney is still the toughest market for first home buyers to get a foot on the ladder.
For someone saving $200 per week at a rate of 2%, it will take nine years and six months to save a 10% deposit for a median priced unit, plus lenders mortgage insurance and stamp duty. For couples saving $400 per week it will take five years.
In Melbourne, buying your first home is far more achievable. For singles buying a median priced unit, it will take six years and three months to save a deposit. For couples, it will take three years and three months.
Brisbane remains to be one of the more affordable capital cities. To save the required deposit for singles it will take four years and one month. For couples able to save $400 per week it will only take two years and one month to save the required deposit.
RateCity research director Sally Tindall said the new figures show getting into the housing market is tough, but not impossible.
She added, “As the property market declines and investors dip out, there’s now a real opportunity for first home buyers to get into the market.
“There are a couple of things they can do to maximise their chances of getting a home. They include saving a big enough deposit to avoid paying lenders mortgage insurance and taking advantage of the first home buyer grants and stamp duty exemptions in your state.”
The figures were calculated using apartment prices from CoreLogic data and Genworth’s lenders mortgage insurance calculator.