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With interest rates at an all-time low – and unlikely to rise significantly for at least a few more years – commentators are going mad for the apparent affordability of home loans.

This is all very well if you have the cash or equity available to get a loan. But what if you’re still saving for your deposit? Where do you stand?

Probably the most common way that people try to accomplish their savings goals is by putting their money into a term deposit. Currently, a term deposit is only going to be earning you 3.05% over five years.

If you compare this to the average property appreciation rate (at least double the term deposit rate), you’re never going to make it. Your $10,000 term deposit will earn you an extra $1,600 over five years, but the $400,000 home you want could have gone up by ten times that amount.

For the first homeowner or average-income property buyer, this is a major problem, and there’s only one real way of overcoming it: save harder.

If interest rates are going to stay low, and if Brisbane property values keep climbing, buyers are going to have their work cut out for them unless they commit themselves to their savings goals.

In the short term, savvy investors might consider taking out heftier secured loans with mortgage insurance to at least get on the ladder and grow their worth via property ownership rather than waiting on their piggy banks to plump up.

Back to the title: is it still worth saving for a deposit? Definitely. But it’ll require active saving, rather than sitting on a term deposit and waiting. Remember to always consult a qualified financial advisor before making any big decisions relating to properties or investment.

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Hicks Real Estate is a Brisbane based, full-service real estate agency supporting buyers and sell as well as renters and property investors. With almost 20 years experience in the local market, we are the real estate experts you can rely upon.