As the dream of homeownership becomes progressively more attainable for first-home buyers in Australia, research provides hope for those eager to step onto the property ladder. The concept of saving for a deposit has often been perceived as an insurmountable hurdle. However, the landscape is shifting. Here, we’ll look at how the journey has become shorter, particularly for those looking to settle in Western Australia.

Grasping the Current Landscape

Data from the Domain Group underscores a notable trend: the time required to save for a 20% deposit on an entry-priced home for first-home buyers has decreased when compared to the previous year. This has empowered individuals, particularly those from Western Australia, to engage more confidently with the housing market.

At a national level, new figures reveal that it now takes an average of 4 years and 9 months to save a deposit for an entry-level house, down from 4 years and 11 months the previous year. For a unit, the time has reduced to 3 years and 5 months, a one-month improvement.

Western Australia: A Closer Look

In Perth, the timeline for saving for a house deposit stands at 3 years and 10 months, while for a unit, it’s a mere 2 years and 5 months. This makes Perth one of the more accessible markets for entry-level buyers. Several factors contribute to this trend, and understanding them can significantly benefit prospective homeowners.

Factors Driving This Positive Shift

Contrary to what one might assume, this accelerated path to homeownership is not due to a decrease in property prices. Indeed, property prices have continued to rise. So, what’s changing?

Increased Earnings Power

The main driver has been the growth in earnings power. This includes higher wages and increased interest rates on savings accounts, allowing potential buyers to accrue funds more rapidly. This financial environment enables individuals to combat rising property prices more effectively.

Strategic Savings

Savvy financial planning has become more prevalent among young couples aged 25-34, the demographic on which this study focused. Utilising a combination of higher earnings and prudent savings strategies has proven crucial in reducing the time required to amass a 20% deposit.

Economic Resilience

The Western Australian economy’s resilience has played a part. With stable employment opportunities and a robust economic infrastructure, residents can anticipate consistent income growth to support their home-buying aspirations.

The Role of Government Schemes

Government initiatives and schemes designed to facilitate first home purchases also offer valuable support, enhancing purchasing power and expediting entry into the property market.

First Home Owner Grant (FHOG)

This grant can significantly defray the costs associated with purchasing or building a new home, providing additional financial relief to prospective homeowners.

Stamp Duty Concessions

Stamp duty concessions further ease financial pressures, potentially reducing the overall expenditure on home acquisition.
The journey to homeownership, though less daunting than before, still involves navigating various financial intricacies. This is where Peel Finance Brokers come in. Specialising in guiding first-home buyers with low deposits through complex financial landscapes, we offer expertise in securing favourable home loans and advise on leveraging government schemes effectively. Contact us today to explore your options and take the next step on your path to homeownership.