Queensland the easiest place for
Queensland is the most affordable first homebuyer property market on the eastern seaboard, with the average first-time buyer couple needing to save for 3.8 years to raise a 20 per cent deposit to buy a house.
This is lower than the national average of 4.1 years and the fourth shortest savings period of any state or territory, according to the sixth annual Bankwest First Time Buyer Deposit Report.
The report also shows saving for a house deposits was easier in the majority (54 per cent) of Queensland local government areas, compared to 2013. This is in stark contrast to New South Wales and Victoria, where saving times have increased by 78 per cent and 84 per cent of LGAs respectively.
Saving periods for Queensland first-time buyers have increased slightly over the past year (2.7 per cent), driven by an increase in median house values of 5.8 per cent in the past 12 months.
However, over the past five years first-time buyer wages have outpaced median house value growth, with wages growing by 19.1 per cent compared to house value growth of 1.9 per cent.
“Compared to the other eastern states, Queensland offers the most-manageable firsttime buyers’ market,” said Ian Rakhit, Bankwest head of specialist banking.
“But with strong wage and population growth across the state, it’s possible that Queensland’s first-time home market will soon gain pace, in line with New South Wales and Victoria. Queenslanders in a position to buy their first home now will benefit from relatively favourable conditions.”
The study found it would take less than two years to save for a house deposit in almost one in five (17 per cent) of LGAs in Queensland, while a further 76 per cent would take between two and four years to save a house deposit.
At the top end of the Queensland market, 7 per cent of LGAs (three out of 46) would have savings times of more than four years.
This number pales in comparison to the 32 per cent of LGAs that would take four or more years of saving to buy a first-time home in New South Wales.
For Deagon residents Ben Elder and Taylor Felsman it took two years to save a deposit on their first home.
“We were lucky in that we learned about financial responsibility from both our parents so we were both good at having a set amount that we saved every week,” Mr Elder said.
“It was definitely difficult but we didn’t have to give up too many things to get there. If anything, it's the costs we weren’t aware of like dealing with solicitors that were trickier for us.”