Bankwest has compiled data from the Australian Bureau of Statistics (ABS) and property analytics firm CoreLogic, to reveal how long it takes first home buyers to save a deposit in each of Australia’s capital cities.
The data was calculated based on ABS income data of the average combined salary of two people aged 25-34, saving 20% of their pre-tax income in a high-interest savings account.
Based on that data, it takes 4.2 years for an average income couple to save a 20% deposit on a house in Adelaide, the fifth longest in the country. For a unit, that drops to 3.1 years.
Unsurprisingly, people living in Sydney have to save the longest (8.2 years for houses, 5.9 years for a unit), followed by Melbourne (6.4 years for a house, 4.4 years for a unit), ACT (4.6 years for a house, 3.1 for a unit) and Brisbane (4.5 years for a house, 3.3 for a unit).
After Adelaide came Perth (3.9 years for a house, 3.2 for a unit), Darwin (3.8 years for a house, 2.7 for a unit) and Hobart (3.8 years for a house, 2.9 for a unit).
The average for all capital cities was 4.9 years for a house and 3.6 for a unit.
Although Adelaide is considered affordable, only one in every 10 properties sold is to first-home buyers. This is likely due to people aged 25-34 having the second lowest wages in Australia, according to the report.
Source: ABC News