QLD first home buyers still active
WHILE house prices are definitely cheaper in regional Queensland compared with capital cities, saving a deposit can still take first home buyers up to five years.
According to money expert, Bessie Hassan of finder.com.au, who has crunched the numbers using average income and median house prices in Toowoomba, it would take three years to save the $60,320 needed for a 20 per cent deposit on a $377,000 home.
“If you’re saving for a deposit, check out local property prices in the area and work out what you’ll need for a deposit. Remember, you should aim for at least a 20 per cent deposit so you can avoid paying mortgage insurance,” she said.
Ms Hassan said one of the quickest ways to cut spending and increase savings was cutting "luxury items’’ such as food delivery services or travel.
“Parking your funds in a high-interest savings account or a term deposit may also help you maximise your return and fast-track your way into the property market,” she said.
She advised potential first-time buyers to run an audit on their financial accounts to see if they could be paying less fees or interest as a way of finding more savings.
National data from the Australian Bureau of Statistics showed that the number of finance approvals for first home buyers was now at its highest level in eight years.
In Queensland, the number of finance approvals increased by almost 10 per cent.
REA Group chief economist Nerida Conisbee said while the number of finance approvals for investors and upgraders had dropped, first home buyers were bucking the trend.
“We are now seeing the highest level of first home buyers since 2010,” she said.