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New industry research has revealed the Australian suburbs where saving for a home deposit and stamp duty takes the least amount of time, with the top-ranked market allowing buyers to step onto the property ladder in under three years.
A new study from Tiimely Home has examined more than 500 suburbs across major Australian cities and towns, comparing median house prices, weekly household incomes, and stamp duty fees to determine the markets where saving for a 20 per cent deposit on a home and stamp duty takes the least amount of time.
Under these metrics, the study determined that the Western Australian suburb of Inglewood offers the most accessible property ladder in the country, with residents able to cover the 20 per cent deposit and stamp duty for a new home in an average of just 2.9 years.
Noting that the suburb is located only 5 kilometres north-east of Perth’s central business district (CBD), the company stated that Inglewood offers “relatively cost-effective” housing compared to other inner-city suburbs.
The company also highlighted the suburb’s median weekly income of $2,031 as being “slightly higher” compared to more rural locations which, coupled with the market’s affordable housing prices, allow residents to save for a house deposit in approximately 152 weeks.
Following Inglewood is the rural town of Wagin in the Wheatbelt region of Western Australia, roughly a two-hour drive from Perth, where residents are able to place a housing deposit after saving for 3.8 years.
Even with the area’s comparatively lower median weekly income of $1,073 – $958 less than Inglewood – the company stated that this is offset by Wagin’s low stamp duty fee of approximately $2,160 and low median house price of $210,000, enabling buyers to save for a 20 per cent deposit and stamp duty in around 198 weeks.
Next on the list is the suburb of Coonamble in Dubbo, NSW, where saving for a deposit and stamp duty takes 4.1 years.
Due to the town’s economic reliance on agriculture and lower median income of $1,231, the company cautioned that borrowing power could be affected, contributing to Coonamble’s lower median house price of $247,500.
As a result of Coonamble still having a higher median house price and a more expensive stamp duty fee ($17,235) than Inglewood and Wagin, the company stated it will take residents approximately 215 weeks to get onto the property ladder.
This time frame is significantly shorter than the 67 years and 65 years, respectively, required to save for a home deposit and stamp duty in the NSW suburbs of Vaucluse and Bellevue Hill, which are identified as Australia’s least affordable suburbs for home buyers.
Speaking on the study’s findings, lead broker at Tiimely Home, Veronica Foreman, highlighted the importance of understanding the factors which can enable buyers to “expedite their journey to home ownership”, adding “house prices tend to reflect local income levels, as wages and economic opportunities shape borrowing capacity”.
Nevertheless, the broker emphasised that even in the most affordable suburb, it still requires “nearly three years of savings to secure a deposit”, stating that the Reserve Bank of Australia’s recent decision to hold interest rates steady has “impacted affordability further” and resulted in the current market being “particularly challenging, especially for first home buyers”.
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