We know it’s tough, but we also see Brissie first timers achieve their home ownership dreams on a regular basis, so we think it’s worth getting to the truth behind the headlines.
The news.com.au article was based on a Finder survey which found it takes 12 years, on average, across Australia to save a deposit to buy a house. In Queensland the average was 14 years, and in some states, much longer.
OK, so how did they arrive at those timeframes?
The figures are based on a 20 per cent deposit and the assumption that households save a quarter of their income after paying their living expenses. It also assumed house prices and wage growth will continue as they have done.
Sounds reasonable. And as far as broad-brush averages go, it’s a typical way to calculate things.
But why settle for average when you can be a savvy saver and first-time buyer?
Here are some ways you can slash your deposit saving time and fast-track home ownership:
- Get advice from an independent mortgage broker or financial planner. If house prices are rising faster than you can save you may be better off saving a smaller deposit and taking out a larger loan if you can afford the repayments.
- Check out government schemes that can help first time buyers, including the First Home Guarantee which supports eligible home buyers to buy a home with as little as a 5 per cent deposit without paying lenders mortgage insurance. Also look for more to come on the Help to Buy scheme set to launch in 2024 where the government essentially chips in up to 40 per cent of the cost of a home, becoming a sort of co-owner.
- Buy at the cheaper end of the market. It sounds obvious but being pragmatic can mean the difference between buying now or 10 years from now. Remember, your first home doesn’t need to be your forever home, and once you’re in the market you’ll get the benefit of future property price growth which can help you springboard to your dream home down the track.
Ready to buy? View our current listings for sale.
Still thinking about it? Contact us for a chat.