Saving for First Home Deposit Getting Easier
According to a new study by Bankwest, new home buyers are taking less time to save for their deposit thanks to stagnant property prices and rising incomes.
Couples buying their first home took on average three months less time to save in 2012 than in 2011, and didn’t have to save as hard, either. Plus, home loan rates are much better as well.
Bankwest retail chief executive Vittoria Shortt said that it’s because of both plateauing house prices and increasing wages, not one or the other.
Of course, Sydney and Melbourne homes are still more expensive and require a longer saving period, which doesn’t come as a surprise to Shortt, who recommends that people looking to buy in these expensive cities consider the suburbs.
“Every state has places where you can find cheaper property and that’s the most important factor for anyone thinking of buying a first home,” she said.
Those looking to buy in Queensland or Tasmania, on the other hand, are looking at much shorter saving times.