Average First Home Buyer Needs $120K Deposit

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%.

Former Aussie Rules player Jeff Chapman’s dream beach house, which has had its praises sung by The Independent in the UK, is back on the market with a revised – and more competitive – price guide.

The contemporary pavilion-style residence Alinghi, created by celebrated architect James Grose, was voted one of the top five beach houses in the world by the British newspaper and has been operating as a luxury holiday rental earning up to $7000 a week.

The one-time Melbourne forward and founder of Bennelong Funds Management, and his wife Carena Shankar, listed the five-bedroom getaway back in mid 2024 with hopes of about $8 million. The prestige property is now back with new agent Pauline Karatau of Ray White New Farm and the amended guide now sits at $6.5 million.

As part of the private 5ha Rocky Point estate, at the southern end of the Great Barrier Reef overlooking Honeymoon Bay, the glamorous holiday home shares not only a private beach with just four other neighbours, but also a 30m saltwater pool, a full-size tennis court, a beach cabana with barbecue facilities and a full-time live-in caretaker on site.

Alinghi seemingly floats against the cliffs of North Queensland’s Capricorn Coast consisting of two pavilions and shallow reflections pools for ultimate serenity. Residence number 5 is home to a two-storey main pavilion with large living spaces spilling onto semi-enclosed areas framing enviable ocean views. Upstairs there are four bedrooms, including two with ensuites. The second pavilion is a private retreat housing the main bedroom suite with an additional study or wellness space.

Crafted by Grose to leave minimal impact on its natural environment, the house features external materials sourced locally including rich cedar, plus glass and Travertine stone specifically chosen to blend and weather with the landscape over time.

The low maintenance property is also relatively self sufficient thanks to water tanks collecting the region’s abundant rainfall. Despite it’s northern Queensland address air-conditioning is an after-thought due to the clever cross-ventilation design principles and deliberate orientation capturing ocean breezes that flow through the large footprint.

Alinghi’s external lightning has also been carefully designed to be low voltage with minimum impact upon the local wildlife including wallabies, echidnas, goannas, turtles and even a diverse range of native birds. From the private terraces throughout winter, homeowners can also track the migratory whales.

Alinghi is a 90-minute drive away from Agnes Waters and its sister town of 1770 (also known as Seventeen Seventy). It is approximately 120kms from Bundaberg, which is home to a well-serviced domestic airport.

Alinghi is listed for sale with a price guide of $6.5 million via Ray White New Farm agent Pauline Karatau on 0418 733 773.

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.