How Long Will It Take to Buy My First Property in Sydney If I Earn $100K a Year?
Are you earning $100,000 annually and dreaming of owning your first home in Sydney? With soaring property prices, it’s easy to feel like that dream is out of reach. But don’t worry, it’s possible! Here’s a clear, step-by-step guide on how long it might take and what you can do to speed up the process.
Sydney Property Prices: The Current Snapshot
Sydney is one of the most expensive cities in the world, and it’s important to understand what you’re up against.
Average house price: $1.3 million
Average apartment price: $800,000
The first step in your homeownership journey is figuring out how much you need for a deposit.
How Much Deposit Do You Need?
Most lenders require a 20% deposit to avoid Lenders Mortgage Insurance (LMI). For an $800,000 apartment, that’s $160,000. But you can opt for a 10% deposit ($80,000), though this adds LMI costs, typically between $10,000 and $20,000.
What Can You Save with a $100K Salary?
After tax, you’re left with about $75,000 a year or $6,250 a month. Assuming you’re living sensibly and putting away 50% of your take-home pay, that’s $3,125 a month for savings.
How Long Until You Can Afford a Deposit?
20% deposit ($160,000): Roughly 4 years and 3 months of saving.
10% deposit ($80,000): Around 2 years, but don’t forget about LMI.
Don't Forget Additional Costs
Besides the deposit, there are several upfront costs to consider:
Stamp duty: Approximately $30,000 for an $800,000 property.
Legal and inspection fees: Around $3,000–$5,000.
Moving costs: Around $500 to $2,000, depending on the size of your move.
What Can Speed Up the Process?
First Home Buyer Schemes: Take advantage of government grants and deposit schemes in NSW, like the First Home Owner Grant or First Home Loan Deposit Scheme, which allow some buyers to purchase with as little as 5% deposit.
Smart Savings: Put your savings in a high-interest account or investment options to grow them faster.
Should You Buy or Rent?
While renting gives you more flexibility, homeownership builds long-term wealth. With property prices likely to keep rising, delaying your purchase could mean paying significantly more in the future.
Conclusion: Stay Focused on Your Goal
With a $100,000 salary, buying your first property in Sydney is definitely possible—it might take 3 to 5 years of diligent saving and smart financial choices. The key is planning and patience. Your dream home is closer than you think!