The Australia Institute paints a stark picture for first home buyers in Sydney
New research from The Australia Institute paints a stark picture for first home buyers in Sydney.
Not a single worker across 17 occupations – even high earners like surgeons – would have saved enough for a 20% deposit between June 2015 and December 2024, despite saving 15% of their after-tax salary each year.
A checkout operator would be $250,762 short, while a registered nurse would still need another $196,410. Even couples didn’t fare much better – only a surgeon/nurse pairing would have hit the target.
That’s largely because Sydney’s house prices have soared over the past decade, with the median rising from around $800,000 in 2015 to $1.4 million by the end of 2024.
Chief economist Greg Jericho said saving for a home in Sydney has become “almost an impossibility” without a very high income or financial help.
The good news? First home buyers still have options. Many are buying with just a 5% deposit by paying lenders’ mortgage insurance (LMI), and some professions – like doctors, nurses and lawyers – may even qualify for an LMI waiver.
First home buyers have the opportunity to access the First Home Guarantee (FHBG) as part of the Home Guarantee Scheme (HGS). With the FHBG, eligible home buyers can benefit from having a portion of their home loan guaranteed by Housing Australia through a Participating Lender. This provision allows eligible buyers to purchase a home with only a 5% deposit, eliminating the need to pay Lenders Mortgage Insurance (LMI).
About the author - Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking a better deal on their home loan.
