Renters are giving up
A new survey of 1,000 Australians currently renting (by comparison website Finder) has found that 47% have considered that they might never buy due to rising house prices.
“It is tough for any first home buyer to save a deposit in Australia right now. The toughest in history actually. And for those renting, no one is doing it as hard as them” said FHBA co-founder Daniel Cohen.
“It is the toughest time in history to save a deposit”
Fellow FHBA co-founder Taj Singh said when it’s this hard, all the little things count. “You have to cut down on expenses as much as you can and save as hard as you can. When you are looking to boost your overall savings for something like a deposit, there are really only two things you can do. One, boost your income. Two, cut your expenses”.
On behalf of aspiring first home buyers FHBA will also continue to lobby the Australian and State governments for more support for first home buyers.
Sydney first home buyer’s have it hardest
It probably comes as little surprise to hear that Sydney first home buyers have it hardest. Last week Domain reported that if you save “40% of your income from today, it will take until 2021 to purchase your first home. And that’s provided property prices don’t rise, rents don’t increase and you maintain an $80,000 salary”.
Taj Singh told Domain that “first home buyers can buy with the bare minimum, 5%, however you may not get the best loan in terms of interest rates and loan features”.
Taj went on to say “living at home for longer, co-purchasing with another hopeful home buyer, buying an investment property instead of a home or getting a cash gift, or a guarantee from a parent, are all other ways those struggling to save a deposit could get on the property ladder sooner”.