If you’ve just started thinking about saving for your first home, we’re sorry to say, but with the current market, you’ll need to be putting aside a huge chunk of your income.
New data shows that if you saved 40 percent of your wage from now onwards, it would take until 2021 for you to be able to purchase your first home.
That’s if current property prices don’t rise. Oh, and assuming you’re currently making at least $80,000.
No, you’re not the only one having a mild panic attack right now.
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Considering that first-home buyers generally have to put down a 20 percent deposit to secure a home loan, it would currently take more than four and a half years to have enough money to buy, Domain reports.
If someone on an annual salary of $80,000 saved around $477 a week of their after-tax income (leaving $725 for rent and other expenses), a deposit would for a home worth under $500,000 would be possible by late 2021.
Though factoring in that it’s pretty much impossible to save that much every single week without fail, and that housing prices are most likely going to rise in that time (we’re looking at you, Sydney), the report says it’s more likely to take the average person seven years.
It also noted that these ever-increasing prices would most likely result in more full-time renters who don’t ever attempt to climb the property ladder.
