PHOTO: Getting into the housing market sooner could come at a substantial cost. Photo: James Alcock

First-home buyers could pay almost $53,000 more to buy a property using the federal government’s 5 per cent deposit scheme than if they saved for a larger deposit, a new analysis shows.

But renters in pricey cities might be better off paying the extra money to get into the market sooner, instead of spending money on rent that could have been put towards a deposit.

Housing affordability remains a hot issue around the country, with sky-high dwelling prices still out of the reach for many despite recent falls.

First-time buyers are set to get help from the federal government, which proposed a new plan shortly before the election.

adsense

READ MORE VIA DOMAIN