Recent research highlights the significant upfront costs associated with purchasing a home in South Australia, with specific insights for potential buyers in Adelaide. A report by MCG Quantity Surveyors indicates that even with savings of $30,000, buyers can cover the required 20 percent deposit and other initial expenses in only 26 suburbs.
For example, in Elizabeth North, the total upfront cost to acquire a median-priced home valued at $510,000 is approximately $21,880. In contrast, potential buyers seeking to purchase a unit in metropolitan Adelaide can do so in 55 suburbs if they have the same savings, with Kurralta Park presenting the most affordable option at just $15,405 for a property costing $381,500.
Increasing savings to $50,000 substantially expands the options for prospective homeowners, allowing access to an additional 202 suburbs for house purchases. This enhanced financial capacity also opens the door to a median-priced unit in 18 more metropolitan suburbs.
For buyers outside the metropolitan area, the situation is even more favorable. With $30,000, one can purchase a median-priced house in 59 regional suburbs or towns. Raising the deposit to $50,000 further increases possibilities, including access to another 17 towns and a unit in Normanville.
Mike Mortlock, the director of MCG Quantity Surveyors, emphasized that the high property prices relative to incomes have rendered the traditional 20 percent deposit unrealistic for many first-time buyers. He explained, “Even putting together a 5 percent deposit in some areas is getting difficult. It can still be a lot of money and take an average earner years to save. The high cost of living makes it even harder for individuals to build their savings.”
Many prospective buyers now rely on parental assistance, with Mortlock noting that the “bank of mum and dad” has become Australia’s fifth-largest lender. He acknowledged the disparities in financial support, stating, “It’s great for those who can get that support, but some people don’t have parents who can do it.”
The recent rate cut by the Reserve Bank of Australia has encouraged many South Australians to refinance their home loans to reduce household expenses. This trend reflects a growing awareness of the need for financial agility in a challenging market.
Tanya and Jason Presland, aged 44 and 50 respectively, recently refinanced their loan from HomeStart to another lender. Their experience mirrors that of many clients who have opted to refinance, with data showing a significant increase in the number of loans refinanced from 4,428 between 2015 and 2019 to 5,680 from 2020 to 2024—a notable rise of 28 percent.
“If it weren’t for them, we would never have got into our own house four years ago,” Ms. Presland remarked. She noted that their refinancing has created opportunities for others in need of assistance.
Andrew Mills, CEO of HomeStart, underscored the importance of homebuyers being aware of the support available for upfront costs, such as stamp duty exemptions. He stated, “After buying a home, it’s also important to make sure the loan continues to meet their needs. Many HomeStart borrowers choose to refinance after a few years, recognising they can also ‘pay it forward’ to more South Australians needing some help.”
The report also provided a detailed overview of the suburbs with the lowest and highest upfront costs for purchasing a home in Adelaide.
In terms of affordability, the following suburbs require the lowest upfront costs:
– **Elizabeth North**: Median price $510,000, Upfront cost $21,880
– **Elizabeth South**: Median price $510,000, Upfront cost $21,880
– **Elizabeth Grove**: Median price $522,000, Upfront cost $22,540
Conversely, the suburbs with the highest upfront costs include:
– **Medindie**: Median price $3,300,000, Upfront cost $175,330
– **Unley Park**: Median price $3,000,000, Upfront cost $158,830
– **Rose Park**: Median price $2,550,000, Upfront cost $134,080
These statistics highlight the varying landscape of property ownership in South Australia, revealing both opportunities and challenges for potential buyers.
