- Domain has released data revealing how long it is taking the average first home buyer to save a 20% deposit.
- Timelines differ dramatically between markets, from less than two years to buy a Darwin apartment all the way up to six and a half years for a Sydney house.
- Here’s how much you’ll need, and how much it’s changed in recent years.
- Visit Business Insider Australia’s homepage for more stories.
First home buyers are plunging into the market during the pandemic, but for most, it’s taken a good few years of saving to get to the point of purchasing.
New data from Domain has revealed just how long on average it takes new homeowners to work up enough of a 20% deposit to buy in each capital city.
While prices in most markets have been on a tear higher in recent years, there have been exceptions.
“Although the majority of capital cities saw the journey to homeownership become a little longer compared to the same time last year, in recent months weakening prices will eventually translate to improved affordability,” Domain senior research analyst Nicola Powell said.
“Buying conditions have improved, first-home buyers appear to be taking advantage of low interest rates, retreating investor activity, reduced foreign buyer interest, the extension of the Federal Government’s first home loan deposit scheme and other state-based incentives.”
Saving for a unit in Perth, Brisbane, and Darwin has actually become easier, for example, with it taking one to two months less than before to cobble together a deposit.
In fact, looking back five years you can even add Melbourne, Sydney and Canberra to that list as well. While apartments in the Harbour City, still take five years and seven months to save for, its at least an improvement on the six years it took back in 2015.
Of course, there are very few markets that the average Australian would call ‘cheap’. Unsurprisingly, most buyers are looking at much higher prices than they were in years gone by.
Anything in Hobart is going take a year or longer to save for than it would have in 2015. Houses in Canberra take a full-year longer, while the wait time on one in Melbourne has blown out by nearly a year and a half.
At any rate, this is how long you can expect to sweat it out before going to see a bank about a loan.