Depending on buyers’ personal circumstances,waiting could mean being able to get more money to spend at auction when compared to projected property price rises,but analysis from comparison platform Canstar showed not everyone would be ahead. They may also need to save more money to afford the deposit on a larger loan.
Buyers in Melbourne could end up in a better position if they wait,Canstar analysis showed. A couple with one partner earning the average income and one earning half that could afford to buy the median dwelling in Melbourne right now,with $4,000 left over. At the end of 2025,assuming five 0.25 per cent Reserve Bank rate cuts,they would have even more money left over.
If house prices rise 5 per cent by the end of next year,they would be about $60,000 ahead. If they went up 9 per cent,as some forecasts predict,the gap would narrow to about $29,000.
In Sydney,buyers could not afford the median house now or after rate cuts,regardless of whether house prices rose 5 per cent,7 per cent or 9 per cent. They would be roughly $300,000 short in any scenario.
In Brisbane,a couple earning 1.5 times the average income would struggle to afford the median dwelling now,but would be in luck if prices rose only 5 per cent or 7 per cent. In Perth,the same couple could afford the typical home now or after interest rate rises.
Canstar group executive Steve Mickenbecker said the data reflected the difficulty first home buyers faced when trying to break into the market.