For many Australians, purchasing a first home is a significant milestone but it can also be a daunting dream that feels unattainable. Across the nation, the ability to buy a home differs significantly due to cost-of-living pressures and rising property prices which vary across states. The journey to homeownership can really depend on where you want to live, because of variations in average income levels as well as State based Government incentives on offer.
Working With The Averages
In 2025, the “average” Australian annual income is approximately $104,765 per year, which works out to be about $8,730 per month. (source: Grattan Institute).
Income also differs depending on where you live. This is disproportionate across the country, with the highest average income being earned in the Nation’s capital- ACT with average annual earnings at $110,578 per annum, with the lowest average income earners living in Tasmania with an average salary of $89,362.The number of high income earners in Sydney, NSW is just over five per cent and only 3.5 per cent of Queenslanders are in that same income bracket and in South Australia it’s just 2.6 per cent.
Canberra continues to enjoy high median incomes with 5.3 per cent of adults in the top tax bracket.
The proportion of people earning under $18,200 is in a pretty similar proportion across the country.
When Can I Buy A Home? A State-by-State Breakdown
The path to homeownership in Australia varies significantly across states, influenced by property prices and average incomes. While saving for a deposit and paying off a mortgage can be lengthy processes, strategic planning and informed decisions can streamline the journey. By understanding the landscape and leveraging available resources, aspiring homeowners can achieve their goal of homeownership.
Now we understand average salary levels, let’s look at Mortgages. The standard mortgage tern for most home loans is 25-30 years.
and we have made the following assumptions:
– Deposit savings comes from 20% of average state based after-tax income annually.
– No significant debts or obligations
– Interest rates and property prices remain stable.
- New South Wales (NSW)
With the median house price sitting at $1.49milion (median unit price $859k), then the time to save a 20% deposit on the median income for NSW will take approximately 9.5 years to save and 5.5 years to save. It will take approximately 30 years to pay off your house, and 25 years if you own a unit.
- Victoria (VIC)
The median house price of $1.01million and ($650k for units) will take approximately 6.5 years to save up your deposit and 4.2 years for a deposit to buy a unit.
This is shaving 3 years off the time it takes in NSW, which means you will be ahead in your mortgage payments and pay down your property sooner.
The average time to pay off a house is 28 years in VIC which is another 2 years faster than NSW and 24years for unit holders.
Using the averages, you will be 5 years ahead buying a house in Vic compared to NSW (3 years ahead on the deposit and paid off 2 years quicker due to cheaper property prices).
- Queensland (QLD)
If you’re looking to buy in Queensland, you can expect the median house to be around $864k and about $505k for a unit.
It is expected that it would take 5.5 years to save a deposit for a house and 3.2 years if you’re buying a unit. Your house will take 27 years to pay off and 23 years if you buy a unit. Which is very comparable to property buyers in Victoria.
- South Australia (SA)
South Australia is growing in popularity for migration and re location so house prices are expected to rise throughout 2025.
Currently the median house price in SA is $882k and $600k for units. It will take 5.7 years to save a deposit for a house and 3.8 years for a deposit to buy a unit.
What is quite enticing, is that to pay off your house, it might only be 26 years, and 22 years for a unit. You will be much less tied to the bank than in NSW. (approximately 8 years better off than NSW due to your deposit being saved quicker and mortgage paid down in a shorter period!).
- Western Australia (WA)
We have experienced a lot of growth recently in WA, with the median house price currently sitting at $849k ($607k for units).
If you’re a home buyer, you can expect to save for 5.4 years for a deposit, and 3.9 years if you rare buying a unit.
The time to pay off your mortgage will be approximately 25 years for a house, and 22 years for a unit.
- Tasmania (TAS)
Our friends in Tasmania can expect to get into their family home sooner, with median prices around $715k for a house and $537k for a unit.
It will be twice as fast as NSW to save a deposit on the average incomes in Tasmania, expecting to take 4.5years to save for a house deposit and 3.4 years for a unit deposit. You can expect to pay off your house in around 24 years and unit 21 years.
- Australian Capital Territory (ACT)
In the nation’s capital, with the highest average salaries, you are paying $975k for a median house and $594k for a median unit. This is expected to take you 6.2years to save for your house deposit and 3.8years for a unit deposit.
You will be tied down to a house mortgage for approximately 28 years and 24 years for a unit.
- Northern Territory (NT)
The country’s cheapest median property prices can be found in the Northern Territory with the median house price sitting at $613k and the median unit price sitting at $378k.
The second lowest median income earners but the cheapest property prices means that your 20% deposit will take approximately 3.9 years to save, and 2.4 years for a unit deposit.
You will also be able to pay your property off quicker in the NT than any other State or Territory with 23 years for a house to be paid off and 20 years for a unit.
Buying a Property Sooner- Strategies To Accelerate Your Savings
- Budgeting:Track your expenses and identify areas to cut back- such as streaming services, unnecessary charges (bank fees, excess withdrawal fees), unnecessary subscriptions.
- High-Interest Savings Accounts:Utilize accounts with competitive interest rates to grow your savings faster.
- Government Schemes:Explore programs like the First Homeowner Grant (FHOG) or First Home Super Saver Scheme (FHSSS) for potential benefits.
- Shared Ownership:Consider co-buying with a partner or family member to share costs.
- Location Flexibility:Be open to purchasing in more affordable suburbs or regional areas.
Government Grants and Schemes For First Home Buyers
Top of FormIn Australia, each state and territory offer various schemes and incentives to assist first home buyers in 2026.
It’s important to note that eligibility criteria and application processes vary between states and territories. Prospective first home buyers should consult their respective state or territory revenue office or official government websites for the most current information and to confirm their eligibility.
Here’s a comprehensive overview:
Nationally:
- First Home Guarantee (FHBG):Allows eligible first home buyers to purchase a home with as little as a 5% deposit, with the government guaranteeing up to 15% of the loan, eliminating the need for Lenders Mortgage Insurance (LMI).
- Help to Buy Scheme:The government contributes up to 40% of the purchase price for new homes and 30% for existing homes, reducing the amount you need to borrow.
First Home Super Saver Scheme (FHSSS): Allows first home buyers to save for a deposit within their superannuation fund, benefiting from the concessional tax treatment.
Summary by State and Territory
|
State/Territory |
FHOG Amount |
Stamp Duty Concessions |
Notes |
|
NSW |
$10,000 |
Up to $1 million |
New homes only |
|
VIC |
$10,000 |
Up to $750,000 |
New homes only |
|
QLD |
$30,000 |
Up to $800,000 |
New homes only |
|
SA |
$15,000 |
Available |
New homes only |
|
WA |
$10,000 |
Up to $530,000 |
New homes only |
|
TAS |
$10,000 |
Up to $750,000 |
New homes only |
|
ACT |
N/A |
Income-based |
No FHOG |
|
NT |
$50,000/$10,000 |
New homes only |
Based on property type |
New South Wales (NSW)
- First Homeowner Grant (FHOG):$10,000 for purchasing or building a new home valued up to $750,000.
- Stamp Duty Exemptions/Concessions:Full exemption for homes valued up to $800,000 and concessions for homes up to $1 million.
Victoria (VIC)
- FHOG:$10,000 for new homes valued up to $750,000.
- Stamp Duty Exemptions/Concessions:Full exemption for homes up to $600,000 and concessions for homes between $600,001 and $750,000.
Queensland (QLD)
- FHOG:$30,000 for new homes valued up to $750,000 (available until 30 June 2025).
- Stamp Duty Concessions:Available for homes valued under $800,000.
South Australia (SA)
- FHOG:$15,000 for new homes with no property value cap.
- Stamp Duty Exemptions:Available for first home buyers building new homes.
Western Australia (WA)
- FHOG:$10,000 for new homes valued up to $750,000 south of the 26th parallel and up to $1 million north of it.
- Stamp Duty Concessions:Available for homes valued up to $530,000.
Tasmania (TAS)
- FHOG:$10,000 for new homes with no property value cap.
- Stamp Duty Exemptions:Full exemption for established homes valued up to $750,000.
Australian Capital Territory (ACT)
- FHOG:Not available for contracts signed after 1 July 2019.
- Stamp Duty Concessions:Available for eligible buyers with income below certain thresholds.
Northern Territory (NT)
- HomeGrown Territory Grant:$50,000 for building or buying a new home; $10,000 for purchasing an established home.
- Stamp Duty Exemptions:Available for new homes; no concessions for established homes.
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Disclaimer:
Aus Property Professionals Pty Ltd retains the copyright in relation to all the information contained on its website and in this guide. This guide, and any content provided in addition, or linked to resources, is general information only and not investment advice. As everyone’s individual situation is different, we advise individuals to always seek advice from relevant professionals such as legal, financial, accounting, and investing experts.
The intention of this guide is to be used for general information purposes only, in addition to your personal research and due diligence. We do not take any responsibility for any actions taken as a result of this guide as any actions should always be taken with consultation with relevant professionals who take individual circumstances to account.
Past performance doesn’t guarantee future results.
We have compiled the information contained in this guide from online resources, our research, and consultations, and we cannot guarantee the complete accuracy of this information, and we will always reference the resources where the data and information was derived.
