Aussies need 11 years to save for a house
Aussies need almost 11 years to save for a house deposit, new research has found, and once they get onto the property ladder they face higher mortgage repayments.
The latest ANZ CoreLogic Housing Affordability Report revealed it would now take 10.9 years for first home buyers to save up a deposit, down from 11.3 years in the June quarter.
Sydney buyers needed the most time to save - at 12.8 years - while Melbourne buyers needed 10.6 years and Brisbane buyers needed 10.1 years.
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Although the time to save a deposit has decreased, home buyers now need to allocate a bigger proportion of their income to making their home loan repayments, thanks to rising interest rates.
On average, Aussie home buyers need to set aside 43.3 per cent of their income to service a new mortgage, an increase from 38.9 per cent in the previous quarter.
That number increases to a massive 51.1 per cent for Sydney mortgage holders, up from 47 per cent.
Melbourne buyers need 42.4 per cent of their income to service a loan (up from 38.1 per cent), while Brisbane buyers need 40.3 per cent of their income (up from 37 per cent).
Generally, a household is considered to be in mortgage stress if more than 30 per cent of pre-tax income is required to cover home loan repayments.
The Reserve Bank is expected to hike interest rates again when it meets for its final meeting of the year in December.
How long does it take to save for a house?
The time it takes to save for a house deposit depends on where you live. Here is what the report found for cities across Australia:
Sydney - 12.8 years
Melbourne - 10.6 years
Brisbane - 10.1 years
Adelaide - 11 years
Perth - 7.7 years
Hobart - 11.3 years
Darwin - 5.2 years
Canberra - 8.9 years
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