Or peo­ple to buy their first home

The Courier-Mail - Property - - REALESTATE -

Mr Elder said sav­ing for a first home was al­ways go­ing to be hard work for buy­ers.

“It’s all rel­a­tive fi­nan­cially so it’s hard to com­pare our sit­u­a­tion now to what our par­ents went through,” he said.

“The ma­jor dif­fer­ence would prob­a­bly be just how com­pet­i­tive the prop­erty mar­ket is now, which is some­thing ear­lier gen­er­a­tions prob­a­bly didn’t have to deal with as much.”

Long sav­ings ar­eas were spread across the state, par­tic­u­larly in with tourist des­ti­na­tions such as the Gold Coast, the Sun­shine Coast, Cairns and the Whit­sun­days.

“We’re al­ready see­ing longer sav­ing times in the Gold Coast, but it’s likely the 2018 Com­mon­wealth Games will fur­ther im­pact the price of and sav­ing times for prop­er­ties in the Gold Coast and sur­rounds,” Mr Rakhit said.

Na­tion­ally, first-time buy­ers are be­ing forced to save for longer as the me­dian value of houses out­paces salary growth.

On av­er­age, Aus­tralian first-time buy­ers will now take 4.1 years to save a 20 per cent de­posit for a house, up from 3.9 years in 2013.

De­spite an in­crease in the me­dian price of hous­ing across Aus­tralia, wages among first­time buy­ers have only grown by 2.6 per cent over the year with saver in­comes lag­ging be­hind.

A large part of the growth in na­tional hous­ing prices can be at­trib­uted to low in­ter­est rates, with stan­dard vari­able rates cur­rently at the low­est level since 2009.

The cur­rent av­er­age rate of 5.9 per cent per an­num is well be­low the av­er­age rate of 7.3 per cent seen over the past 10 years.

While low in­ter­est rates may make it eas­ier for home­own­ers to ser­vice their loans, they can also make it more dif­fi­cult for first-time home buy­ers to save for a first home de­posit.

For a cou­ple sav­ing their money in a high­in­ter­est on­line sav­ings ac­count, the av­er­age in­ter­est rate has been 2.5 per cent over the past 12 months, down from 3.17 per cent in 2013, and the av­er­age rate of 4.69 per cent over the past 10 years.

“Cer­tainly, to­day’s low in­ter­est rates make home loans more ser­vice­able for young home­own­ers but for most, sav­ing a de­posit for their first home re­mains the big­gest chal­lenge,” Mr Rakhit said.

“While in­ter­est rates are low, it’s im­por­tant to de­velop a tai­lored plan that will make the most of your sav­ings each month.

“We en­cour­age those plan­ning to pur­chase their first home to shop around to find the best sav­ings plan for their needs.”

A full list of re­sults for 465 lo­cal gov­ern­ment ar­eas across Aus­tralia is avail­able in the Bankwest re­port is avail­able at bankwest.com.au.

Deagon res­i­dents

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