Young couple has trouble saving for a house deposit despite reaching their target more than once

The home deposit “finish line” keeps moving for a young Brisbane couple who have reached their target multiple times.

Buying a house has become something of an optical illusion for a young Brisbane couple who never seem to save enough money for a deposit despite reaching the “finish line” more than once.

The market has risen so fast since Dylan Robertson and Molly Ionn started eyeing off potential homes in the low $500,000 range in Zillmere, on Brisbane’s north side, a year ago, they are now having to save for the $600,000 plus bracket.

Not only are they forever playing catch-up on an overheated property market, but there’s also always the threat of an interest rate rise on the horizon.

Dylan Robertson and Molly Ionn are hoping to be first homeowners soon and, when they do make a purchase, they have budgeted for repayments at five per cent, Picture David Clark

However, that is the least of concerns for the pair who have based their mortgage repayments on a rate of five per cent.

“What we are putting aside every week, even if the interest rates went up, we would be able to make the payments quite comfortably,” Mr Robertson said.

“Interest rates going up means it will be a bit tougher in the coming years, but we would be looking to make repayments closer to five per cent anyway.”

Their journey for a new home started earlier this year when they knuckled down with a savings plan and target as they reached the market, with Brisbane’s north side their prime target.

They honed in on Zillmere, about 10km north of the CBD, although houses there have jumped 20 per cent over the 12 months, and 6.5 per cent in the September quarter, with the median rising to $618,042.

This three-bedroom home on a 706 sqm block on busy Beams Rd, Zillmere sold for $650,000 in October. The median for Zillmere is $618,042. Picture: LJ Hooker

“We weren’t looking for all the bells and whistles, just something comfortable to live in that we may have to add aircon,” Mr Robertson said.

“We‘ve been saving all year and have quite a bit of money for the deposit but now it’s not enough and we are going to have to save another six months before we can make a serious offer.

“It does seem like we reach our goal, and then they keep moving the finish line.”

In Zillmere, the current income-to-repayment ratio is 18.3 per cent, and should rates rise by one percentage point, that goes up to 20.8 per cent, well below the general 28 per cent benchmark where mortgage stress can kick in.

Besides Zillmere, the couple has scoured Taigum, Bracken Ridge, Griffin and Murrumba Downs.

“We are trying to stay on the north side and near the Gateway Motorway as I work on the south side and Molly works on the north side,” he said.