New research by RateCity.com.au on how long it takes to save a home loan deposit in Australia found first home buyers looking for a median-priced unit in Brisbane ($382,601) could take just over two years if they put away $400 a week or four years if they saved $200 a week.
But the shock find was Sydney, where it takes nine and a half years for buyers to putting away $200 a week to afford a median unit ($740,093), and if they doubled their savings – putting in $400 a week – they could have a deposit together in the time it takes to get a newborn to their first day of school – five years.
The savings have to cover a 10 per cent deposit as well as lenders mortgage insurance for first home buyers and stamp duty.
Sally Tindall, RateCity’s research director, told news.com.au the figures proved that getting a foot in the door was tough but not impossible.
“As the property market declines and investors dip out, there’s now a real opportunity for first home buyers to get into the market,” she said.
“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 homebuyer grants and stamp duty exemptions in your state.”