WA best State to jump on the property ladder
WA’s first-homebuyers are in the best position in the country, living in the only State where the size of the deposit, and the time it takes to save it, has fallen in the past year.
A Bankwest report out today shows it now takes WA entry-level buyers 3.6 years to save $94,651 required for a 20 per cent deposit for a median-priced first home, based on CoreLogic’s median of $470,000.
This is down from 3.8 years and the $101,300 needed for a 20 per cent deposit last year.
Donna Dalby, Bankwest’s general manager, personal and small business banking, said WA had bucked the national trend.
“WA as a whole is the most accessible mainland State for first-time buyers,” she said. Nationally, it takes an average 4.6 years to save the $111,080 needed for a 20 per cent deposit. It also takes three months longer than in 2016 (4.4 years) and an extra $7173 on last year’s $103,907 deposit. While the size of 20 per cent deposits in South Australia ($80,985), Queensland ($92,240) and Tasmania ($61,352) are smaller than in WA, these values have jumped since last year.
Lower wages in Queensland and SA means that it takes entry-level buyers months longer to save the deposit compared with their counterparts in WA. Only Tasmania has a shorter savings period, 3.1 years. The Northern Territory is the only other place where the deposit, and the savings period, has dropped over the year, though it is still higher at $109,433.
WA’s first-time buyers comprise a bigger portion of the market than any other State, at 21.7 per cent last financial year, compared with 14.3 per cent nationally. First-homebuyer Karla Goncalves, who earns $48,000 a year, saved a $32,000 deposit for a $300,000 house and land package in Greenlea Estate, Baldivis. The 27-year-old administration worker said it took years to save the deposit.
“There’s no money left at the end of the week,” she said. “I pay my rent and I get as many groceries as I can but I don’t go out, or drink or smoke. All luxuries were sacrificed.” She said the sacrifice was worthwhile, as she believed this was “the best time to buy”.