Yahoo Finance Hate scrimping? Here's where you can save a house deposit fast
If you want to shave years off the time it takes to save for a home deposit, perhaps consider a move to Perth, the most affordable city for first-home buyers.
It still takes three years and seven months to save for an entry house, according to the new data form Domain, and two years and six months for a unit.
That’s compared to the national average of five-and-half years to buy the standard entry-level home.
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The time it takes to buy a home has stretched by 11 months across all capital cities compared to this time last year.
Darwin is also fairly reasonable at four years and three months. In Adelaide, it takes four years and seven months to save for a deposit.
Unsurprisingly, saving to buy a house in Sydney will take you the longest out of all the capital cities.
Expect to be pinching pennies for eight years and one month to get yourself into the Sydney property market.
Canberra has eclipsed Melbourne with the second-longest saving period, at seven years and one month.
These calculations are based on how long it takes a couple aged 25-34 to save a 20 per cent deposit based on the average dual income.
Housing affordability continues to bite
Housing affordability is top of mind for many Australians, with the latest Australian Bureau of Statistics showing residential property prices rose 23.7 per cent in the past 12 months.
In 10 years, house prices have increased by 101 per cent across all capitals.
However, wages have not kept up with these steep rises.
Over the past 20 years, the average annualised property growth in capital cities is 6.9 per cent and for regionals, 7.1 per cent, compared to annualised wage price growth of just 3 per cent.
Many Australians are also taking on concerning amounts of debt, with almost one in four new mortgages considered ‘risky’ according to new data released by the Australian Prudential Regulation Authority (APRA).
APRA’s ADI property exposure report for the December 2021 quarter found 24.4 per cent of new mortgages had a debt-to-income ratio of six times or more, in dollar terms.
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