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The housing market in Australia: how long it takes the first home buyers to keep the deposit

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A new report shows how long it takes Australian first home buyers to stockpile on deposit as real estate prices continue to skyrocket wages.

A report by ANZ and CoreLogic, real estate firms, shows that the first homebuyers living on an average weekly salary of $ 1,665 will need more than 11 years to save on the average 20 percent deposit needed to avoid paying creditors. . Mortgage Insurance (LMI).

According to the data, the average deposit for the purchase of real estate in Australia, including apartments and houses, rose to 147,795 dollars.

In urban and regional areas, the average savings time on housing differs: in the capital is 11.2 years, and in rural areas – 10.5 years.

The head of the Australian research department CoreLogic Eliza Owen said that record high prices create a “significant barrier” for first-time real estate buyers.

Camera iconBuyers of first homes need an average of 11 years to accumulate a deposit for their first home. David Swift Credit: News Corp Australia

“The average national cost of housing is currently estimated to be 8.5 times higher than the average annual income of households in the country,” she said.

“This is a record figure and an increase of 6.8 times since the launch of Covid-19 two years ago.

“Moreover, the increase in the value of housing and income was the largest in regional Australia, where property prices rose much more than income.”

The report found that rental costs across the country – including New Wales, Victoria, Queensland and Western Australia – are almost the same as mortgage repayments.

Some examples include Burke in New Wales, East Pilbury in VA, Grampians in Victoria and Far North Queensland.

After the pandemic, advertised rents rose 13 percent.

Last month, a new Finder study – a website for financial comparisons – found that nearly half of tenants surveyed had difficulty paying rent.

Sarah Meginson, senior editor of Money Finder, said the increased pressure on tenants puts them in a very vulnerable position, and “little money is left for other needs.”

“Once they pay the rent, life becomes very difficult,” Ms. Meginson said.

“Some tenants just can’t afford a quick increase in rent in such a short amount of time, and there are even stories that families are forced to live in cars or in makeshift tents on the street.”

Housing stock
Camera iconTenants are encouraged to negotiate with their property manager if they have difficulty paying rent. NCA NewsWire / Brenton Edwards Credit: News Corp Australia

Ms. Meginson urged tenants to try hard to negotiate an “emergency audit” with their property manager.

“If you can’t afford a lease and you have a lease, contact the property manager and see if you can negotiate with your landlord,” she said.

“Those who are currently in the house could consider reducing the townhouse or apartment because the increase in rent for the apartment was not so drastic.

“Cut down on all unnecessary expenses and conduct an emergency audit of all utilities to see where you can save money on things like electricity bills and insurance.”

https://thewest.com.au/business/australia-housing-market-how-long-it-takes-first-home-buyers-to-save-house-deposit-c-6771884

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