Just over four years to save a deposit
An interesting report has just been released by BankWest claiming that a first home buyer in Queensland needs to save 4.5 years to get a house deposit and that this is up from 4 years.
It’s a fairly emotive report that claims that “thousands of young Queensland residents have been forced to rent or live at home with their parents for an extra six months, as they struggle to pull together a house deposit”.
Whilst there is no denying the fact that increasing house prices do mean that it takes longer to get a deposit organised, the reality is that the main assumption that is behind the report is that you need to save a 20% deposit as a first home buyer which is simply not correct and, in fact, it was only a few days ago on this website and more recently in our newsletter that we discussed changes that meant that First Home Buyers could get a loan based on a deposit of just 5% and that this could come from a variety of sources.
In fact, the timing is such that now could in fact be an ideal time for a first home buyer to be looking at entering the market – prices have slowed down, it’s a buyers market, the need for genuine savings has been removed with some lenders ….
The report does identify some good information and you can view it here.
If you’re really struggling, Paroo and Quilpie are two of the cheapest areas.
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