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Saving up for a deposit on your first home can be a daunting task, particularly if you live in a capital city. It can be hard to know how much you need to save and for how long. However, new data has revealed the time-frame first home buyers can expect to spend saving to pull a deposit together.
According to Domain’s First Home Buyer’s report, which arrived at the time frames based on how long it takes couples aged 25 to 34, saving 20% of their net income, to buy an entry-price home with a 20% deposit – which is classed as the cheapest 25% of properties in each area of Australia.
For first home buyers shopping in Sydney, a couple can expect to spend six years and eight months saving for an entry-level property, while a single person will need to save for 13 years.
However, if you look at property further out of the city, such as Campbelltown or Blacktown, it takes just five years and six months for a couple to save a deposit.
On the opposite end of the spectrum, saving a 20% deposit for an entry-level home in Mosman can take up to 23 years for a couple on average incomes.
However, for those looking to get on the property ladder sooner rather than later, and are happy to live outside the city, Wyong on the Central Coast has a quick savings timeframe of just three years and eight months for a couple on an average income to save a 20% deposit for an apartment.
Singles saving for a 20% home deposit can expect to spend twice the number of years saving as a couple.
It’s certainly food for thought.
You might also like:
What you need to know about the First Home Loan Deposit Scheme
5 need-to-know tips for first home buyers
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