How long you’ll need to save to earn a deposit

PHOTO: Rob Bakos, 23, at the home he bought with the help of his parents. Picture: Wayne Taylor Source: News Corp Australia

A SOLO first-home buyer now needs to save for almost a decade to earn a 10 per cent deposit for a typical Melbourne home — and they can forget about aiming for 20 per cent.

Home loan comparison site mozo.com.au has projected how long someone saving for a median-priced home in Victoria’s capital would require if prices and wages grew at the same rate as the past decade.

The analysis reveals a single person putting away $182 per week or $790 per month — 15 per cent of the average after-tax Victorian salary — would need nine years and eight months to compile 10 per cent of a median-priced $718,325 dwelling.

And Mozo director Kirsty Lamont said the median wage “simply isn’t enough” to support a solo first-timer attempting to save a 20 per cent deposit — the amount required to avoid paying lenders mortgage insurance — amid soaring Melbourne home prices.

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