How many years to save a deposit?
SAVING a deposit for a home has become almost unattainable for single buyers with new figures revealing in some states it can take decades.
Queensland buyers were a little better off than some of their southern counterparts but the data from Mozo.com.au revealed sacrifices still need to be made.
It could take a solo buyer 16 years and ten months to save a deposit for an average house in Queensland priced at around $490,000, if they saved 15 per cent of the average take home pay.
The report found in Sydney and Melbourne, which had experienced a massive surge in property prices in recent years, it was very difficult for the average solo buyer to save on their own for a deposit.
Mozo.com.au analysed the median after-tax wages and dwelling prices in each state to calculate how long it would take the average solo first homebuyer to save a 20 per cent deposit assuming wages and property prices continued to grow at current levels.
Nationally the average Australian first homebuyer starting with a $5000 deposit and saving 15 per cent of the average after-tax salary each year would now take 20 years and 11 months to save the required deposit on their own.
Mozo director Kirsty Lamont said the Northern Territory, where property prices had dropped significantly in the past couple of years, had one of the shortest wait times of 11 years.
"In some parts of Australia, it's still viable for solo first home buyers to break into the property market, but the wait time is sizeable,'' she said.
"Sadly, for New South Wales and Victorian residents, the median wage simply isn't enough to support the solo purchase of a first home," she said.
She said potential first home buyers living in areas with high property prices, may have to team up with others to get into property.
Or they could consider rentvesting, buying where they can afford but renting where they want to live.
If a solo Queensland buyer was able to live at home with their parents and put aside 30 per cent of their after tax income, they could have that deposit together in a much faster six years.
But if they only manage to put aside 10 per cent of their pay a week, it could take more than 20 years.