Average First Home Buyer Needs $120K Deposit
Finder’s latest figures show that only a few first home buyers plan to put down a 20% deposit.
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The average deposit needed to enter the property market has reached a record $120,000 according to analysis by comparison site Finder,
Finder’s senior editor of money Sarah Megginsons was shocked when the figure reached such lofty heights.
“Many first-time buyers can’t afford the hefty deposits,” Ms Megginson said.
“Australia has recently been through a house price boom and the increased deposit requirement as a result is making it much harder to crack into the market,” she said.
“Getting on the property ladder is becoming out of reach for many with affordability deteriorating.”
According to the latest Australian Bureau of Statistics lending data, Finder put the average loan size for the first-home buyers at $479,610 in April — almost $33,000 higher than a year earlier and more than $40,000 higher than two years ago.
However, Ms Megginson has the latest figure at about $120,000 for a 20% deposit on the average $600,000 first-home buyer property.
While the deposit amount has reached a new peak, the price falls predicted by the likes of CBA and other major banks, should come as good news to those looking to get into the market.
Despite this, with the RBA adjusting for interest rates to fight soaring inflation, affordability remains an ongoing issue.
Higher rates will increase repayments and reduce borrowing capacities, which Ms Megginson noted means people won’t be able to borrow as much.
“The actual amount first-home buyers can borrow is going to fall, as well as the fact that repayments are going to increase,” she said.
The ABS data showed the number of new owner-occupier loans to first-home buyers fell by 4.4% in April, to be 34.3% lower than a year earlier. However, it remained 4.2% higher than pre-pandemic levels in February 2020.
The Finder survey found 75% of first-time buyers paid or are planning to pay less than a 20% deposit.
That included 14% who planned to or did pay just 5% upfront.
Only 16% of those surveyed had or planned to put down a 20% deposit, while another 9% expected to have more than 20%.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
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An imposing Scottish castle that has only had four owners in its more than 200-year existence has hit the market asking for offers above £8 million (US$10.45 million).
Seton Hall, as it’s known, was built in 1789 by architect Robert Adam using stone from Seton Palace, the since-demolished property that was considered to be Mary Queen of Scots’s preferred retreat, according to Savills, which brought the home to the market last month.
“Seton is an absolutely magical castle—from the moment you approach, to the inner courtyard, to the quality of interior design,” said listing agent Jessica Gwyn.
The castle—roughly 10 miles from Edinburgh—remained in the same family from the late 18th century until 2003, which “served to freeze Seton in a protective time warp,” according to the listing.
Castellated features such as slit windows and turrets can be seen from the outside, and inside “secret staircases, curved doors, curved walls, arched windows and hidden doors add to the charming sophistication of the architecture and design,” the listing said.
But the castle has since been refurbished to meet modern standards, and now also boasts a helipad, a full security system, a gym, a playroom, a silk-lined dining room and a billiards room.
The restoration project saw a team of expert stonemasons rebuild the castle’s many chimneys, turrets and rooftop parapets. Plus, ironwork was restored, the dumbwaiter reinstated and the 10,000-bottle wine cellar was brought back to life, Savills said.
Alongside the seven-bedroom home that forms the core of the castle, there are additional residences across the property, including Darnley Cottage and Bothwell Cottage—named after Mary Queen of Scots’s husbands.
The castle’s stables have been refurbished, too, and are adjacent to the “Stable Bar,” the castle’s private pub.
The owner—who Mansion Global couldn’t identify—“feels their time as custodian of this outstanding building has come to a natural conclusion and it is time for this historic home to be loved and cared for by someone else,” Gwyn said.
This article first appeared on Mansion Global
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
