Mozo reckons shacking up with the parents necessary for savvy first time home buyers
First homebuyers need to save consistently for a decade to muster the average $113,000 property deposit, according to the latest calculations by the comparison site, Mozo.com.au.
“First homebuyers are having to face the huge hurdle of bridging the ‘deposit gap’ to buy a property, which could take anywhere between six and 14 years, depending on the city,” said Mozo director, Kirsty Lamont.
Mozo crunched the numbers on the average property price in each capital city to work out just how much and how long was needed to save to build up a 20% deposit.
“Anyone renting in Sydney could buy six years and five months earlier by shacking up with the parents,” said Kirsty Lamont.
Mozo’s four tips to speed up the savings process:
• Start now, it’s never too early to start saving for your first home.
• Cut back on high everyday costs like transport or rent, consider moving back home or curb your entertainment and eating out costs.
• Look for a better rate of return on your savings balance. Shop around and take advantage of bonus or intro offers.
• Consider buying a property with a family member if your circumstances allow.
Deposit amounts are calculated based on the average capital city dwelling price, using CoreLogic RPData Home Value Index, June 2015.
Savings amount is calculated at 15% of the average monthly salary in each state based on ABS Average Weekly Earnings Australia, November 2014. The tax was deducted using the various tax rates outlined by the ATO.
Average Sydney rent of $530 a week based on Domain Group Rental Market Report, June 2015.
