New Study Show Brisbane First Time Home Buyers Are Saving Deposits 2x Quicker Than Sydney Buyers
Research by the “Bankwest First Time Buyer Report 2017”, has shown that First Time Buyers (FTBs) in Sydney better be pulling on their savings caps.
On average a Sydney FTB will need to save for a whopping 8.2 years to afford a median priced home in the New South Wales capital. Median priced homes also came in at $215,133 for a deposit. That’s a whopping 28.8% more expensive then Melbourne’s median priced property deposit of $153,008.
It is safe to say Victoria and NSW isn’t a great place to be buying your first home currently. The smarter buyers are moving out to Brisbane, Perth and Adelaide for the comparatively lower Median priced homes and shorter time to save for the deposit.
On average it will take a Brisbane FTB 4.5 years to save, for the $105,950 median price home deposit. With the added benefit of Queensland’s $20,000 grant program for FTBs there has been an 11.2% increase in first home purchases in 2017.
What does this mean and how can a Brisbane First Time Buyer take advantage of the quicker time and lower prices?
Well as a first time buyer it is always best to seek the help of an expert. Who can explain the quickest route to keys? Patrick Cranshaw – expert loans advisor at North Brisbane Home Loans has told us about some popular options that can be used to speed up that time and get your first home quicker than the average.
He advised that when you’re first looking for a loan, don’t go shopping around at the banks as they have strict requirements, minimum deposits and preferred types of employment. They won’t get the time to know you and how you operate, or take in to consideration any plans you may have.
Many FTBs in Brisbane come to Pat with a strong plan, stable jobs and not quite the deposit needed to make the jump with a bank.
Which is where the benefit of using an independent advisor comes in. They already have established relationships with loan providers and can provide leeway on the requirements. While also knowing how to get you the best bang for your buck.
Many first time home buyers are moving into arrangements with their family’s support. This can be in the form of “Guarantee” type loan. Where the family of the FTB will guarantee the mortgage payments even if the buyer cannot make the payments. It adds a layer of security for the bank which means lower minimum deposits, and no need for mortgage insurance which can be costly.
All this means that as a buyer in Brisbane you don’t have to reclude yourself for 4.5 years of saving. There are ways to get there as long as you ask for help and be smart with your money.
It pays to turn attention to reports like this that can reveal effects on so many young people. If you are a buyer in Melbourne and Sydney, you should be thinking about moving to Perth. I hear the surf is great!