PHOTO: Sydney, one of the world’s most expensive property markets.
- Domain First Home Buyer Report revealed how long it takes to save for deposit
- Report compared time it took to save for a 20 per cent deposit in a capital city
- House, unit deposit saving time compared to First Home Loan Deposit Scheme
Saving up for a mortgage deposit to buy even a basic apartment a long way from the city can take more than five years in Australia.
The first recession in almost three decades as a result of coronavirus shutdowns has reduced the prices of houses and units.
Despite that, saving up for a 20 per cent deposit would still take a young couple five years and seven months in Sydney for a basic $585,000 apartment, the Domain First-Home Buyer Report has revealed.
Help is at hand, however, with the federal government’s $500million First Home Loan Deposit Scheme enabling property newcomers to buy a home with a five per cent deposit.
How long it takes to save for a loan deposit
SYDNEY: Five years and seven months for a $585,000 unit; six years and six months for a $680,000 house
MELBOURNE: Four years and three months for a $424,500 unit; six years for a $600,000 house
BRISBANE: Three years and three months for a $328,000 unit; four years and six months for a $450,000 house
ADELAIDE: Three years for a $285,000 unit; three years and 11 months for a $375,000 house
PERTH: Two years and five months for a $257,000 unit; three years and five months for a $366,580 house
HOBART: Three years and six months for a $320,000 unit; four years and two months for a $380,000 house
DARWIN: One year and eight months for a $200,000 unit; three years and one month for a $362,000 house
CANBERRA: Three years and four months for a $370,000 unit; five years and five months for a $606,060 house
Source: Domain First-Home Buyer Report, September 2020
Taxpayers underwrite the rest of the 20 per cent deposit.
Domain senior research analyst Nicola Powell said the government program had made it much easier for first-home buyers.
‘Although the majority of capital cities saw the journey to home ownership become a little longer compared to the same time last year, in recent months weakening prices will eventually translate to improved affordability,’ she said.
‘Buying conditions have improved, first-home buyers appear to be taking advantage of retreating investor activity, reduced foreign buyer interest, the extension of the federal government’s first home loan deposit scheme and other state-based incentives.’
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