Average First Home Buyer Needs $120K Deposit
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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.

By Kanebridge News
Tue, Jun 14, 2022 2:40pmGrey Clock 2 min

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%.



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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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Hotel experience at home in Castle Hill

A new development in the Hills District sets a new standard in buyer expectations

By KANEBRIDGE NEWS
Wed, May 22, 2024 3 min

Castle Hill is set to be home to a new hotel-like development, with the announcement that the 94-apartment Astrid site is just weeks away from completion.

While the penthouse apartments across the two buildings have already been snapped up, there are still one, two and three-bedroom residences on offer. The development comes with a gold star iCIRT rating, guaranteeing it has met quality construction standards. The iCIRT rating system has been developed by Equifax in partnership with government, industry and market and rates projects from one to five stars following a rigorous and independent review process.

Steve Harb from developer CBD Core, said it’s the best indicator would-be buyers could have that their investment is safe.

“The iCIRT rating gives people the assurance that we’re trustworthy and have integrity as a developer,” he says. “Our service is complete from start to finish, from developer to builder. 

“As a buyer, you have one point of contact, there’s no shifting responsibility or passing the buck so if anyone has an issue, it can be sorted out as soon as possible.”

He said Astrid has proved popular with locals interested in upgrading without leaving the convenience and amenity of the Hills District. Surrounded by some of the best restaurants, clubs and recreational facilities in the area, it is also just six minutes’ walk to the new Metro station and a seven-minute drive to Castle Towers Shopping Centre. Schools and tertiary education options are also within an easy drive. In addition to some of the best parks and reserves in Sydney, it’s an attractive option for families on the move.

Mr Harb said the concept for the development, as with all his projects, was to create a hotel-like environment.

“I only do boutique projects and when I say ‘boutique’, I mean hotels without the concierge,” he says. “The quality and integrity is built into it.”

The infinity edge pool is surrounded by leafy gardens in a resort-style environment.

Leisure facilities include rooftop gardens and entertaining spaces as well as a fully equipped gym on the ground floor overlooking an infinity edge pool surrounded by lush landscaped gardens. Mr Harb says beautiful landscaping is a signature of all his developments.

“I have lived in the Hills District for more than 15 years and the reason I live here is because I love the leafy environment, the greenery,” he says. “I always like to emphasise that in my developments with strong landscaping.”

WORK FROM HOME HUB

Recognising the ongoing desire to adopt a hybrid working model, Astrid provides a dedicated on-site working environment suitable for exclusive use by residents needing focused work time, as well as those seeking professional meeting rooms to receive clients, with wifi enabled work desks, as well as more casual seating. 

Mr Harb said the pandemic taught him that, while working from home was convenient, having breakout spaces within a wider residential development was highly attractive.

“You’re not stuck looking at the same four walls,” he says. “The shared work space at Astrid has comfortable lounges, chairs, coffee tables and more than a dozen cubicles,” he says. “It’s more like going into a meeting room in a hotel.”

The apartments are characterised by light-filled interiors.

IN RESIDENCE

The apartments are light-filled living spaces with seamless access to balconies, through to integrated joinery secreting storage. Finishes have been chosen to last, from the Michael Angelo Quartz benchtop and Char Oak Polytec Ravine joinery in the kitchen to the stone splashback and custom-made joinery in the bathroom.

Access throughout the buildings is via a swipe card, providing a secure environment. 

For more information, see Astrid Castle Hill.

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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