WHILE the news seems to be negative in regard to the time it takes to save enough money for a deposit for a first home, there are a number of places in Australia where property is not only affordable – it’s downright cheap.
Granted, they’re not in metro areas, they’re not even on the outskirts of the city. They are small country towns located in regional areas, and the time it takes to save a 20 per cent deposit can be counted in terms of weeks and months rather than a lifetime.
According to Bankwest’s the 2nd Annual First Time Buyer Deposit Report, which used employment, wage and housing data from 544 local government areas (LGAs) to determine that nationally, first time buyers would need to save for at least 4½ years to raise a deposit to buy a house.
In fact, there are exclusive suburbs such as Peppermint Grove in Perth, which has a median house price of $3.89 million and it would take the average wage earning couple 41.8 years just to save a 20 per cent deposit.
On the flipside of that study are a number of LGAs within Australia that are a lot more affordable than Peppermint Grove. For example, in Brewarrina in NSW it may only take just over two months for a couple to save the $9,300 required to make a 20 per cent deposit on a home in that town. Or in Paroo, in south-west Queensland, it may only take around five months to save the $13,900 required for a 20 per cent deposit.
Of course, while first homebuyers may be able to afford a much cheaper house in regional areas, employment is a massive factor. Naturally, there are less jobs available in small towns – so FHBs need to think about how they will pay the mortgage off.
Top 10 cheapest LGAs for FHB (Nationally)
|Local Government Area||Region||State||Years for FTB couple to save deposit||20% Deposit (Mar 2010)||Median House price $ (Mar 2010)|
|Central Darling||Far West||NSW||0.5||14,200||71,000|
A copy of the report is available here.