Buying a house in Melbourne is still a huge challenge for many young people. A new report shows that young Melburnians are more likely to take five years to save for a deposit to buy a home in the cheapest suburbs.
The report released by the Domain Group looked into the entry-level prices of homes in Melbourne’s most affordable areas. It also took into consideration the average wage data from the Australian Bureau of Statistics in estimating the time it will take for people to save for their 20 percent deposit.
The area of Melton is the cheapest area to purchase a house. Suburbs found here include Caroline Springs, Toolern Vale, Rockbank and Fraser Rise. An entry-level house in the area is estimated to cost $424,000 and it would require a couple four years to save for a deposit.
Areas that are also affordable but would take longer up to six years to save for a deposit include Wyndham, Casey, Frankston, Whittlesea, Brimbank and Greater Dandenong.
Maribyrnong is the most affordable area close to the city but would take seven and a half years for house hunters to save for a $752,000 deposit. Those looking to buy a cheap apartment at $360,000 would need three and a half years.
According to Domain data scientist Nicola Powell, the time it would take to save a deposit in Melbourne had increased by eight months in the last year. She attributed this to the high number of first home buyers that have caused housing demand at the lower end of the market to to rise.
As for home loans, migrants and families with young children are facing the most challenges. Mortgage brokers have reported that some home buyers even want to borrow up to 95 percent of their property price. The Australian Bureau of Statistics has noted that more than 29,500 loans to first homebuyers in Victoria have been issued since the stamp duty concessions took effect in July last year.
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By Wendy Chamberlain
Copyright 2018 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent or Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating the sale or purchase of something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.