birds-eye-sydney
Image – Canva
  • Saving for a house deposit could take on average 20 years in some suburbs
  • Finder senior editor of money Sarah Megginson said, "having a realistic budget and starting to save early on, even if it’s just $100 a month, will put you on the right track.”
  • Ms Megginson said inner city suburbs can be pricey as the demand there is high.

Saving for a house deposit could take on average 8 years for Sydneysiders and up to 20 years in some suburbs, according to new research by Finder.

The research analysed property prices and incomes in each of Australia’s capital cities, and in Australia’s LGAs, to determine where saving for a home is the most challenging.

Finder senior editor of money Sarah Megginson said Australia’s property prices had grown at a faster rate than incomes over the past few decades.

“In some suburbs, this contrast is more stark than others.

“It’s mind-boggling just how long it could take homebuyers to save up for a deposit in some of the country’s pricier suburbs.”

Ms Megginson said home buyers shouldn’t feel discouraged.

“Having a realistic budget and starting to save early on, even if it’s just $100 a month, will put you on the right track.”

first-home-buyer-advice
Ms Megginson said considering investing in an affordable property can help get a foot on the property ladder sooner than later. Image – Canva

Ms Megginson said it’s important to have an open mind and to look at all the schemes, grants and incentives that can help you buy a home.

“There are tens of thousands of dollars on offer from various government programs.

“Your first home is probably not going to be your dream home, and that’s completely normal. You can always upsize to a larger home further down the track once you’ve built up some equity.”

Average time to save a deposit by city

Capital City Median house/unit price Deposit (20%) Average weekly household income Years taken if saving 20% of income
Sydney $907,500 $181,500 $2,117 8 years and 2 months
Melbourne $715,625 $143,125 $1,885 7 years and 4 months
Hobart $515,000 $103,000 $1,555 6 years and 4 months
Adelaide $452,500 $90,500 $1,600 5 years and 5 months
Canberra $635,750 $127,150 $2,344 5 years and 2 months
Perth $529,000 $105,800 $1,972 5 years and 1 month
Brisbane $505,000 $101,000 $1,887 5 years and 1 month
Darwin $440,000 $88,000 $2,410 3 years and 6 months
All cities $591,450 $118,290 $1,971 5 years and 10 months

Source: ABS, CoreLogic, Finder

Sydney was the most expensive, with residents needing to spend just over 8 years on average to save for a home deposit.

Melbourne came in second place, with the average time to save a deposit taking 7 years and 4 months, followed by Hobart (6 years and 4 months) and Adelaide (5 years and 5 months).

Darwin came in as the most affordable capital city, with residents needing only 3 years and 6 months to save for a home.

The LGAs where it takes the longest to save for a deposit

State LGA Median house/unit price Deposit (20%) Average weekly household income Years taken if saving 20% of income
NSW Woollahra $2,950,000 $590,000 $3,104 18 years and 2 months
NSW Mosman $2,885,750 $577,150 $3,063 18 years and 1 month
NSW Waverly $2,345,000 $469,000 $2,742 16 years and 5 months
NSW Hunters Hill $2,310,000 $462,000 $2,691 15 years
NSW North Sydney $2,152,500 $430,500 $2,776 14 years and 11 months
NSW Randwick $1,779,750 $355,950 $2,299 14 years and 11 months
NSW Strathfield $1,662,500 $332,500 $2,178 14 years and 7 months
NSW Byron $1,108,750 $221,750 $1,497 14 years and 2 months
NSW Willoughby $1,940,000 $388,000 $2,719 13 years and 9 months
NSW Burwood $1,335,000 $267,000 $1,941 13 years and 2 months

Source: ABS, CoreLogic, and Finder

The top LGAs where it takes the longest to save based on the average household income are in and around Sydney.

Ms Megginson said inner city suburbs, particularly in Sydney and Melbourne, can be pricey as the demand there is high.

“If you’re not willing to compromise on location, make sure you’re keeping realistic expectations when it comes to size, style and the number of bedrooms and bathrooms.”

LGAs where it takes the least amount of time to save for a deposit

State LGA Median house/unit prince Deposit (20%) Average weekly household income Years taken if saving 20% of income
NSW Cobar $155,000 $31,000 $1,748 1 year and 8 months
TAS West Coast $112,750 $22,550 $1,258 1 year and 9 months
NSW  Broken Hill $130,000 $26,000 $1,334 1 year and 10 months
QLD Isaac $226,250 $45,250 $2,292 1 year and 11 months
QLD Banana $190,000 $38,000 $1,845 1 year and 11 months
WA Port Hedland $298,250 $59,650 $2,796 2 years
QLD Central Highlands $226,375 $45,275 $1,996 2 years and 1 month
VIC Yarriambiack $135,000 $27,000 $1,186 2 years and 1month
SA Wattle Range $156,913 $31,383 $1,357 2 years and 2 months
WA Kalgoorlie/Boulder $265,000 $53,000 $2,249 2 years and 2 months

Source: ABS, CoreLogic, and Finder

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