Where you can save a property deposit the fastest in regional QLD

First home buyers might feel jaded by the huge price rises across Queensland, but new data shows they are still in the game in over 900 suburbs and where they can save a deposit the fastest.

First home buyers might feel jaded by the huge price rises across the Queensland property market, but new data shows they are still in the game in over 900 suburbs across the state.

REA Group crunched the numbers to reveal where first home buyers could buy under the federal Home Guarantee Scheme price caps, finding 905 suburbs across Queensland where median house prices fell below those caps of $700,000 (southeast) and $550,000 (rest of Queensland).

Under the national scheme, first home buyers can purchase a home with a deposit of just 5 per cent, with the government guaranteeing the other 15 per cent, removing the need for expensive Lenders Mortgage Insurance (LMI).

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In the southeast corner, where prices have soared, there are 240 suburbs with a median house price below the $700,000 cap – Brisbane (21), Gold Coast (10), Ipswich (123), Logan-Beaudesert (40), Moreton Bay (38) and Sunshine Coast (7).

The options open up further for first home buyers looking for a unit.

Beyond the southeast corner, first home buyers get even more bang for their buck, with 665 suburbs boasting median house prices below the $550,000 cap.

There are 93 suburbs across the Cairns region with median house prices below the $550,000 cap, while Townsville has 91 suburbs and the Mackay-Isaac-Whitsunday region has 75.

Located in Townsville, 5 Eaton Circle, Kirwan, is listed for offers over $425,000

Elsewhere, Central Queensland has 96 suburbs with prices below the regional price cap, the Darling Downs-Maranoa has 72, Toowoomba 34, Wide Bay 168 and Outback Queensland has 35 suburbs.

In the Gladstone region, 17 Coolibah Street, Kin Kora, is listed for $479,000

REA economic research executive manager Cameron Kusher said the increased caps acknowledged that prices had shot up over the past two years.

But he added that as interest rates started to climb, it was also likely that more suburbs would become within reach of first home buyers if median prices also began to fall.

“These are median house prices so buyers may still be able to buy in suburbs not on this list, but with rates expected to rise, repayments will too, so buyers need to be ready for that,” he said.

In Rockhampton, 306 Everingham Avenue, Frenchville, is listed for offers between $290,000 and $320,000

It comes as The Bright Starters Report, a collaboration between Canstar and Hotspotting, revealed where first home buyers could save a deposit the fastest.

The inaugural report found 107 suburbs nationally that were within reach of first homebuyer budgets and also offered good growth prospects.

It considered median house prices and average salaries in each region, and then calculated how long it would take a single or couple to save a 10 per cent or 20 per cent deposit plus costs.

Hotspotting property expert Terry Ryder said the key for first time buyers was to target the lower end of the market, partner up and borrow 90 per cent.

“It’s not just about affordability for first home buyers,” he said. “They also want desirability and the knowledge that their home will grow in value over time.”

Brisbane was the second most affordable capital city behind Perth, with an entry-level home price sitting at $470,000 and an annual income of $68,164, meaning a single person could save a 10 per cent deposit in around four years and nine months.

A couple could do it in two years and four months, according to the report.

But that blows out for a 20 per cent deposit — nine years and 11 months for a single or four years and eight months for a couple.

In regional Queensland, it’s even easier for first homebuyers to save a deposit faster.

39 Lennox St, Maryborough, is listed for offers over $399,750

Canstar’s calculations show it would take a couple, each earning just over $61,000, one year and 10 months to save enough money for a 10 per cent deposit and stamp duty for a home worth $335,000.

This is based on each person saving 20 per cent of their after-tax income, but on a single income it would take 3.8 years.

And in most cases, the report found the repayments would be cheaper than paying rent.

The report zeroed in on house prospects in Bundaberg East, Kin Kora, Frenchville, Kirwan, Maryborough and Newtown, and units in Nambour, Nerang, Sippy Downs and Yeppoon.

16E Quay Street, East, Bundaberg East, is under contract but was listed for $330,000

Canstar’s editor-at-large Effie Zahos said that saving for a deposit on a median-priced home could be disheartening for first-time buyers.

“This research comes at an ideal time given the prospect of a Reserve Bank cash rate increase and rising interest rates,” she said.

“The jurisdictions identified in the report are affordable with low income-to-loan repayment ratios, allowing room for potential repayment increases when interest rates rise.”

Canstar’s Effie Zahos. Picture: Tim Hunter.

Mr Ryder said first home buyers should also keep a close eye on regional markets.

“Regional areas are growing in popularity as they are typically more affordable than capital cities, but can also offer additional lifestyle benefits like proximity to beaches or nature,” he said.

“The era of remote working means young buyers no longer need to be shackled to major metropolitan areas for work, and can reap the benefits of both worlds.”