One suburb in Australia only takes a year to build up enough for a 20% home deposit, while another region may take 18 years.
Aspiring Australian homeowners spend up to 18 years saving for a 20% security deposit before they can finally afford a home, according to a new report.
Disturbing statistics released on Monday by comparison site Finder showed it took Australia’s most sought-after suburbs nearly two decades for potential buyers to come together enough to save.
However, the less popular areas were significantly cheaper, with some Australian residents only taking a year to build up enough to get a loan approved by the bank.
Unsurprisingly, Sydney took the longest time to save, with Melbourne in second place.
It only took a year and eight months for a regional New South Wales city to save, the shortest span of anywhere, while an upscale Sydney suburb was named and shamed as the most difficult to enter as a first-time buyer.
The regional townships of Queensland and Western Australia, as well as one in Tasmania and one in South Australia, were also among the easiest places for someone to save a down payment for the house.
The Finder’s modeling was based on buyers paying current median prices, earning the average income of people in their area, and setting aside about a fifth of their wages each month.
Sydney was the most expensive city, with residents spending just over eight years on average saving for a security deposit.
The average Melburnian needed to save a deposit for seven years and four months, followed by Hobart at six years and four months and Adelaide who amounted to five years and five months.
Darwin has become the most affordable city, with residents needing only three years and six months – less than half the time it takes Sydney residents – to save for a house.
The report named Sydney’s eastern suburbs, Woollahra, as the most difficult real estate market to enter.
It would take over 18 years to save enough for the 20 percent deposit if needed.
The northern suburb of Mosman was no better, with aspiring homeowners having to be patient for 18 years and a month if they wanted to buy property there.
Waverley, another expensive suburb in eastern Sydney, was a little less, at 16 years and six months.
In Victoria, the Queenscliff local government had the state’s longest wait time for house deposits, taking 12 years and five months.
However, it wasn’t all bad news.
For those eager to enter the market and who looked regional, wait times were considerably less.
Cobar, in the outback of NSW, only needed a year and eight months to save for a deposit according to the model.
Tasmania’s west coast was one year and nine months old while NSW’s Broken Hill was one year and 10 months old.
Sarah Megginson, Money editor for Finder, said real estate prices in Australia have been rising at a faster rate than incomes over the past decades.
“In some suburbs, this contrast is more marked than others,” she explained.
“It’s mind boggling how long it can take homebuyers to save for a deposit in some of the country’s most expensive suburbs.
“But that doesn’t mean first-time homebuyers should feel discouraged. Having a realistic budget and starting to save early, even if it’s only $ 100 a month, will put you on the right track.