First home buyers need to save $77K

The Bankwest First Time Buyer Deposit Report revealed that it now takes first time buyer couples 3.8 years to save for a house deposit, which is about three months less than that recorded in 2011 (4.0 years).

101,146 first home buyers entered the market over the 2011/12 financial year. This is a 17% increase year-on-year, meaning an additional 14,644 first time home buyers have bought new homes.

Based on a 20% deposit for the median national house price ($423,000), first home buyers would need to save an average $77,600, compared to $80,500 in mid-2011.

Over the year, all states and territories saw a decrease in the length of time it takes to save for a house deposit, except for the Northern Territory where the length of time remained the same as in 2011 (4.3 years). Tasmania remains the most affordable state in Australia, where it takes 3.0 years for a first time buyer couple to accumulate enough cash for their first property.

Source: Bankwest