As house-price growth outpaces wage rises, data shows that first-time home buyers have needed more time to save a house deposit in recent years. While Sydney leads the charge on pricy home values, prospective Melbourne property owners are also being fiscally challenged. For example, an average Melbourne house deposit would take nearly 6.4 years of saving. In the Melbourne apartment market, it would take an average of 4.4 years to save for a deposit. These estimates rely on the assumption that 25-to-34-year-old couples with an average income would save 20 per cent of their combined pre-tax income annually into an interest-bearing bank account to make it work.
Despite the rising home values, many first-time hopefuls were emboldened to get in the realty market when the Victorian state government introduced stamp-duty concessions. This led to an increase in property demand. But, of course, the increase in demand also led to a rise in property prices. Read more over on The Weekend Australian to see how first-time homebuyers are participating in the property market.
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