Buying your first home is no small feat - it calls for a glass of champagne, or two, and an obligatory photo in front of the sold sticker. But just how long does it take for first-home buyers to save for a house in the capital?
According to the latest Domain First-Home Buyers Report, it would take five years and five months to save a 20 per cent deposit for a $606,060 house in Canberra, the second most expensive city to purchase an entry-level house, behind Sydney.
The report showed the time taken to save the recommended 20 per cent increased by 6.6 per cent year-on-year, the biggest jump of all capital cities.
Meanwhile, it takes three years and four months to save for a $370,000 entry-level unit. The time taken to save for a unit remained unchanged year-on-year.
"In Canberra, affordability has become stretched with entry-level house price growth exceeding wage growth, while entry-level units remain balanced," said Domain senior research analyst Dr Nicola Powell.
"Canberra's higher average wage helped to speed up saving time, but the path to purchase is a long one."
The report showed the amount of time required to save a 20 per cent deposit for an entry-level house and unit for a couple aged between 25 and 34, based on average incomes in each capital city.
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Dr Powell said the difference of saving for an entry-level house and unit in Canberra was quite vast.
"It would take an additional 25 months to save for an entry-level house deposit compared to a unit, the largest difference of all capitals," she said.
"This reflects affordable unit development specifically targeted to first-home buyers and the large blocks many Canberra houses sit on, even in the more affordable suburbs."
Bree Currall of Belle Property Kingston was surprised at the time it takes to save for a home in the ACT, but said first-home buyer activity was still quite high at the moment with many taking up the government incentives available to them including the ACT stamp duty abolition.
"I recently sold a three-bedroom property in Narrabundah for $807,000 at auction to a first- home buyer," Ms Currall said.
"The buyer had been saving for a home for quite some time, so I think a lot of first-home buyers are quite savvy with their money."
When looking at Canberra regions, those vying for the quickest path onto the property ladder would need to look towards Tuggeranong for the shortest saving times.
With an entry-level house price of $541,000 in Tuggeranong, it would take four years and 10 months for a couple to save for a deposit, this was an increase of 5.5 per cent year-on-year.
"Canberra was initially designed as a satellite city, which in theory should help distribute the workforce across Canberra and then help to distribute the price points but that hasn't happened," Dr Powell said.
"What we find with Canberra is the more expensive areas remain within that CBD area i.e. Inner South and Inner North, and then the further you get out from the city centre, the more affordable property becomes."
It would take a couple two years and 10 months to save a deposit for an entry-level unit in Woden Valley, which will cost them $315,000. "First-home buyers appear to be taking advantage of low interest rates [and] retreating investor," Dr Powell said.
