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Saving for a home? It might take you ten years

Saving for a home? It might take you ten years

New CoreLogic figures have painted a more stable picture of the Australian housing market but saving for a house deposit can still take up to ten years to achieve.

The July CoreLogic Hedonic Home Value Index shows the median property prices across each capital city. Sydney still dominates the property market with a median property value of $775,978.

Melbourne follows close behind at $619,443. Both capitals saw growth of 0.2 per cent over the month.

CoreLogic head of research, Tim Lawless said:

“Our national dwelling value index may have found a floor in July, with dwelling values holding firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year. Since peaking, the national index is down 8.3%.”

Time taken to save for a deposit

Time taken to save based on this weekly deposit

Capital city

Median property price

Total upfront costs 
(including stamp duty & LMI)

$200

$400

Sydney

$775,978

$126,876

10 years 11 months

5 years 9 months

Melbourne

$619,443

$109,289

9 years 6 months

5 years 0 months

Brisbane

$484,998

$66,022

5 years 11 months

3 years 1 month

Adelaide

$427,009

$68,572

6 years 2 months

3 years 2 months

Perth

$441,275

$67,563

6 years 1 month

3 years 2 months

Hobart

$451,191

$69,942

6 years 3 months

3 years 3 months

Darwin

$395,119

$63,272

5 years 9 months

2 years 11 months

Canberra

$586,535

$88,101

7 years 10 months

4 years 1 month

Source: RateCity.com.au, CoreLogic Hedonic Home Value Index

Note: Total deposit figures factor 10% deposit, plus stamp duty and LMI for non-first home buyer. Time taken to save based on savings account paying 2% interest p.a. 

RateCity research has found that it still takes over ten years to save a deposit for a median priced property in Sydney when putting $200 each week into a savings account (paying 2 per cent interest).

It’s a similar story in Melbourne, with homebuyers waiting nine and a half years to afford a property deposit. 

Saving for a property deposit in Brisbane and Darwin is the most time-effective, whether you can afford $200 or $400 a week. This is thanks to Brisbane’s affordable stamp duty prices and Darwin’s low property prices.

How you can speed up your saving time

There are a few ways you can save a property deposit a little faster:

  1. Move back in with mum and dad: If you’re looking for your first home, moving back to mum and dad’s can be a very cost-effective way to live. Put what you would have spent on rent into a high interest savings account and fast track your way into getting out of your parents’ house and into your new home.
  1. Move interstate: If you’re lucky enough to have flexibility within your career and/or if your family are able to, moving interstate is an easy way to cut down on the deposit saving grind. Just by travelling from Sydney to Perth, for example, you’re shaving almost five years off of your wait time.
  1. Compare high rate savings accounts: With savings account interest rates being slashed by most lenders following the two RBA-led cash rate cuts, finding a high rate paying savings account can feel like looking for a needle in a haystack. More than ever it is crucial you do your research around the most competitive savings accounts for your financial needs, so you can save for a deposit faster.

Company
Product

Online Saver

Real Time Rating™

3.54

/ 5

Winner of Best Standard Savings Account, RateCity Gold Awards 2022

Maximum rate

2.10

% p.a

intro 4 months then 1.10%

Base rate

1.10

% p.a

Maximum monthly interest

$20

Real Time Rating™

3.54

/ 5
Go to site

Winner of Best Standard Savings Account, RateCity Gold Awards 2022

Company
Product

Smart Saver Account

Real Time Rating™

4.22

/ 5
Maximum rate

2.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$29

Real Time Rating™

4.22

/ 5
Go to site

Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions.

Company
Product

Future Saver Account (Under 35)

Real Time Rating™

4.94

/ 5
Maximum rate

3.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$43

Real Time Rating™

4.94

/ 5
Go to site

Deposit $1000 minimum monthly deposit into your linked Everyday Account and make 5 or more eligible transactions.

Company
Product

Savings Maximiser

Real Time Rating™

4.17

/ 5

Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022

Maximum rate

2.10%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$30

Real Time Rating™

4.17

/ 5
Go to site

Customers must complete the following each month: 1. Deposit at least $1,000 from an external source; 2. Make 5+ settled card purchases; and 3. Grow the balance on the nominated Savings Maximiser account – i.e. make sure there’s more in the account at the end of the month (excluding interest) than there was at the end of the previous month.

Winner of Best Savings Account Young Adults, Best Savings Account Regular Savers, RateCity Gold Awards 2022

Company
Product

Virgin Money Boost Saver

Real Time Rating™

4.14

/ 5

Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022

Maximum rate

2.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$29

Real Time Rating™

4.14

/ 5
Go to site

special

Deposit $2,000 or more into your Virgin Money Go Account from an external account and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month.

The maximum rate is made up of the variable Base rate of 0.05%p.a., Bonus rate of 1.45%p.a. and the Notice Interest Rate of 0.50%p.a. To receive bonus interest of 1.45%, deposit $2,000 or more into your Virgin Money Go Account from an external account, and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money.

Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022

Company
Product

Virgin Money Boost Saver (< 18 years)

Real Time Rating™

4.14

/ 5
Maximum rate

2.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$29

Real Time Rating™

4.14

/ 5
Go to site

If you are between 14 - 17 years, no Monthly Criteria apply in order to earn the Bonus Interest Rate of 1.45%. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money.

Company
Product

Virgin Money Boost Saver (18-24 years)

Real Time Rating™

4.14

/ 5

Winner of Best Savings Account Young Adults, RateCity Gold Awards 2022

Maximum rate

2.00%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$29

Real Time Rating™

4.14

/ 5
Go to site

special

Deposit $2,000 or more into your Virgin Money Go Account from an external account and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month.

To receive bonus interest of 1.45%, deposit $1,000 or more into your Virgin Money Go Account from an external account, and make at least 5 debit card purchases, direct debit or BPAY payments in the previous month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money.

Winner of Best Savings Account Young Adults, RateCity Gold Awards 2022

Company
Product

Virgin Money Grow Saver

Real Time Rating™

3.71

/ 5
Maximum rate

1.50%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$21

Real Time Rating™

3.71

/ 5
Go to site

The maximum rate is made up of the variable Base rate of 0.05%p.a., Bonus rate of 0.95%p.a. and the Notice Interest Rate of 0.50%p.a. To receive bonus interest of 0.95%, make at least 1 deposit into your Grow Saver and make no more than 1 withdrawal (including any internal transfers or Pay Someone transfers) out of your Grow Saver each month. To receive additional interest rate of 0.5%, the optional Lock Saver Feature must be enabled on your App. Provide 32 days’ advance notice to unlock your account or withdraw your money.

Company
Product

Bonus Saver Account

Real Time Rating™

3.69

/ 5

Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022

Maximum rate

1.60%*

% p.a

Base rate

0.05

% p.a

Maximum monthly interest

$23

Real Time Rating™

3.69

/ 5
Go to site

Bonus interest is paid on balances up to $250k when a customer has made an eligible deposit of $20 into the Bonus Saver account in the calendar month and made 5 eligible Visa card purchases on the linked Everyday or Glide account in the calendar month

Winner of Best Savings Account Regular Savers, RateCity Gold Awards 2022

Company
Product

Kids Saver

Real Time Rating™

4.33

/ 5
Maximum rate

2.20%*

% p.a

Base rate

1.00

% p.a

Maximum monthly interest

$32

Real Time Rating™

4.33

/ 5
Go to site

when at least $5 per month is deposited and no withdrawals made

Company
Product

Youth Reward Saver

Real Time Rating™

3.93

/ 5
Maximum rate

1.75%*

% p.a

Base rate

0.50

% p.a

Maximum monthly interest

$25

Real Time Rating™

3.93

/ 5
Go to site

Make at least one deposit of $10 or more and make no withdrawals during the same calendar month

Company
Product

Kids Dollaroo Savings

Real Time Rating™

3.78

/ 5
Maximum rate

1.50

% p.a

Base rate

1.50

% p.a

Maximum monthly interest

$21

Real Time Rating™

3.78

/ 5
Go to site
Company
Product

Young Achiever Account S50

Real Time Rating™

3.56

/ 5
Maximum rate

1.30%*

% p.a

Base rate

0.50

% p.a

Maximum monthly interest

$18

Real Time Rating™

3.56

/ 5
Go to site

Make one deposit and no withdrawals per calendar month

Company
Product

Retire Style Account

Real Time Rating™

3.18

/ 5
Maximum rate

0.85

% p.a

Base rate

0.85

% p.a

Maximum monthly interest

$12

Real Time Rating™

3.18

/ 5
Go to site
Company
Product

Dynamo Kids Savings Account S24

Real Time Rating™

3.93

/ 5
Maximum rate

1.70%*

% p.a

Base rate

0.40

% p.a

Maximum monthly interest

$24

Real Time Rating™

3.93

/ 5
Go to site

Make a minimum deposit of $20 per month with no withdrawals

Company
Product

Dynamo Kids Savings Account s24

Real Time Rating™

3.93

/ 5
Maximum rate

1.70%*

% p.a

Base rate

0.40

% p.a

Maximum monthly interest

$24

Real Time Rating™

3.93

/ 5
Go to site

Make a minimum deposit of $20 per month with no withdrawals

Company
Product

Pension Account S9

Real Time Rating™

3.29

/ 5
Maximum rate

1.00

% p.a

Base rate

1.00

% p.a

Maximum monthly interest

$14

Real Time Rating™

3.29

/ 5
Go to site
Company
Product

Zoo Account

Real Time Rating™

3.60

/ 5
Maximum rate

1.30%*

% p.a

Base rate

0.10

% p.a

Maximum monthly interest

$18

Real Time Rating™

3.60

/ 5
Go to site

Deposit at least $10 a month and make no withdrawals

Company
Product

Bonus Saver Account

Real Time Rating™

3.00

/ 5
Maximum rate

0.75%*

% p.a

Base rate

-

% p.a

Maximum monthly interest

$11

Real Time Rating™

3.00

/ 5
Go to site

Make one deposit per month and no withdrawals

Company
Product

iSaver

Real Time Rating™

2.89

/ 5
Maximum rate

0.76%*

% p.a

Base rate

0.35

% p.a

Maximum monthly interest

$11

Real Time Rating™

2.89

/ 5
Go to site

Minimum deposit of $200 a month

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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