As the year comes to an end, all the ducks seem to be lining up suggesting that next year will be better for our property markets – always a good sign for those intersted in property investment.
A study released last week by BankWest showed that first home buyers are taking less time to save a deposit for their home due to flat property markets and rising incomes.
Couples buying their first place took about three years and nine months on average to save a deposit in 2012 – about three months less than in 2011.
And they didn’t have to save quite as hard, with the average amount needed for a deposit falling by $3000.
Of course if you live in Sydney or Melbourne, it takes a little longer to save your deposit – five years and eight months and five years respectively. That’s no real surprise and a reason more first home buyers are turning to apartments.
If you happen to live in Queensland or Tasmania, it will only take three years and seven months to lay down a deposit on a home in both states.
The report showed that buyers needed to save an $77,600 in the 2011/2012 financial year for a 20 per cent deposit on the median national house price of $423,000.
That was almost $3000 less than the $80,500 needed the year before.
The Bankwest study used Australian Bureau of Statistics Census income data for couples aged 25 to 34 and median house prices to determine average times to save a 20 per cent deposit. Almost 15,000 more buyers secured their first home in the 2011/2012 financial year than the previous year, a rise of 17 per cent.
Of course there is always affordable housing to be found in every state – you just have to go further out or to regional towns. Fact is, that’s not where many people want to live and the desire for many of us to live in the same type of suburb in our 4 big capital cities is what is pushing up rentals.
With rising rents, lower interest rates, higher wages and signs that the property market has bottomes, it is likley that more first home buyers are going to hop onto the property ladder in 2013.