First home buyers need huge deposit

A first home buyer today needs about twice the deposit amount that a first home buyer needed just 15 years ago. Rising house prices had made home ownership diffcult for first home buyers said the deputy governor of the Reserve Bank, Ric Battellino.

“On plausible assumptions, the deposit needed by first-home owners may now be around one and a quarter years' income, almost twice what it was 15 years ago.”

Mr Battellino said the First Home Owners Buyers Grant and Boost principally helped only the first entrants into the market.

“These measures assist the first wave of buyers who are able to take advantage of them, the benefits diminish over time to the extent that these concessions become capitalised into higher house prices.”

Source: The Age