{"id":5226,"date":"2023-03-23T09:03:40","date_gmt":"2023-03-22T23:03:40","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5226"},"modified":"2023-03-23T09:03:40","modified_gmt":"2023-03-22T23:03:40","slug":"time-to-jump-in-first-home-buyer-deposit-saving-times-plunge","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/time-to-jump-in-first-home-buyer-deposit-saving-times-plunge\/","title":{"rendered":"Time to jump in? First home buyer deposit saving times plunge"},"content":{"rendered":"
First home buyers have been delivered a bit of well-deserved good news with the findings of the\u00a02023 Domain First Home Buyer Report<\/a>.<\/p>\n The analysis shows that first-home buyers aged between 25 to 34 are hitting their house deposit saving goal more quickly compared to April 2022 \u2013 a month before the first of ten consecutive cash rate hikes.<\/p>\n Sydney experienced the biggest decline \u2013 a whopping 17-month drop in average deposit-saving time frames, with it now taking 6 years and 8 months to save a deposit compared to 8 years and 1 month in April 2022.<\/p>\n Brisbane (now an average of 4 years to save a deposit) and Canberra (now 6 years) came in second, both experiencing a 14-month drop.<\/p>\n Melbourne (now 5 years 7 months) and Darwin (3 years 6 months) came next, both with an 11-month decrease in saving periods.<\/p>\n Hobart (5 years 8 months), Perth (3 years 7 months) and Adelaide (4 years 9 months) all saw smaller drops of 5 months, 2 months and 1 month respectively.<\/p>\n Well, 2022 saw a steady decline in national house prices in response to increasing interest rates. In January 2023,\u00a0CoreLogic reported<\/a>\u00a0a record national home value decline of 8.40%.<\/p>\n And as property prices fall, so too does the cost of your 20% deposit.<\/p>\n Also contributing to the shorter savings periods is ABS data showing that\u00a0wages have grown<\/a>\u00a0in both public and private sectors, while the unemployment rate is hovering at a low 3.5%. Rate hikes meanwhile have seen savings accounts accrue more interest.<\/p>\n Despite the promising new CoreLogic findings, saving a 20% deposit can still be a stretch for many.<\/p>\n The increased cost of living means just paying for essentials takes a big chunk of the paycheck, leaving less for savings.<\/p>\n And with home loan interest rates on the up, borrowing capacity has dropped and mortgage serviceability can be difficult.<\/p>\n Also,\u00a0CoreLogic has reported<\/a>\u00a0that house prices have begun to stabilise.<\/p>\n So, as a first-home buyer, how can you speed up the buying process?<\/p>\n Taking advantage of government schemes can\u00a0speed up your home-buying journey by 4 to 4.5 years<\/a>, on average.<\/p>\nHome loan headlines have been, let\u2019s face it, a bit of a downer of late. But the good news is that first-home buyers are now reaching their 20% deposit goal faster.<\/strong><\/p>\n
State-by-state breakdown<\/h3>\n
Why is it quicker to save a deposit now?<\/h3>\n
Overcoming potential challenges<\/h3>\n
Get in on government incentives<\/h3>\n