Aussies hoping to get into the property market will need to wait almost a decade before they’re able to save up for a home deposit, and that also requires them to put aside a whopping $1,605 every month.
Canstar’s new First Home Buyer Survey of 1,088 potential first-time buyers found they were saving, on average, $1,605 per month to put towards their home deposit.
This was up by $188 per month - or 13 per cent - compared to last year when those saving for their first home said they were putting aside $1,417 monthly.
This increase in savings could cut the time to gather a 20 per cent deposit on the median house price by just shy of two years for a single-income buyer with saving potentially taking eight years and eight months.
A double income couple, each saving $1,605 per month, could cut the time to save a 20 per cent deposit by almost one year to four years and two months.
What if I have a smaller deposit?
The time to save a smaller 10 per cent deposit on the median house price with the increased savings could be cut by 11 months for single-income buyers, with it possible to take only four years and two months to save, while couples each saving $1,605 could buy five months sooner after saving for just over two years.
“First-home buyers being able to save more in a cost-of-living crisis shows how determined Aussies are to get off the renting treadmill,” Canstar editor-at-large Effie Zahos said.
“Property prices are continuing to rise but rents are also rising to historic highs. Renters are no doubt feeling the pressure to get a foot on the property ladder.”
Zahos said nine in every 10 potential first-home buyers were prepared to make compromises to buy sooner.
“Radically reducing their spending was top of the list for what they would comprise on, followed by purchasing an older property, and buying an apartment over a house rounded out the top three,” she said.