First-Time Home Buyer Tips

Buying your first home is a major milestone and an exciting one, but it can also feel overwhelming. With Australia’s real estate market constantly shifting, first home buyers need the right information to navigate the process with confidence. This guide outlines practical tips and key considerations to help you make informed decisions and move through the home-buying journey smoothly.

A modern Australian home showcasing contemporary architecture and landscaping.

Before you begin inspecting properties, it’s essential to understand exactly what you can afford.

Assess Your Savings

Start by reviewing your current financial position, including:

• Deposit: A 20% deposit is ideal to avoid Lenders Mortgage Insurance (LMI), though lower-deposit options may be available.

• Upfront Costs: Allow for stamp duty, conveyancing or legal fees, building and pest inspections, and moving expenses.

Obtain Loan Pre-Approval

Mortgage pre-approval provides clarity on your borrowing capacity and strengthens your position when making an offer. This usually involves:

• Submitting income, savings, and expense documentation

• Comparing loan options, such as fixed, variable, or split interest rates

Create a Realistic Ongoing Budget

Factor in more than just your loan repayments, including:

• Monthly mortgage commitments

• Council rates, utilities, insurance, and maintenance costs

Research the Market

Understanding the Australian property market is critical to making confident choices.

Explore Locations

Research suburbs and regions that suit your lifestyle and budget, considering:

• Proximity to work and transport

• Access to schools, shopping centres, parks, and amenities

Monitor Market Conditions

Stay informed by:

• Following property market updates on platforms such as Domain and realestate.com.au

• Attending open homes to understand pricing, demand, and local trends

Engage a Real Estate Agent

A qualified and experienced real estate agent can guide you through the buying process.

Local Market Knowledge

An agent can provide insights into:

• Comparable sales and fair market value

• Planned infrastructure or developments that may impact future growth

Negotiation Expertise

A skilled agent can assist with:

• Structuring competitive offers

• Managing negotiations and counteroffers effectively

Inspect Properties Carefully

Property inspections are a crucial part of the decision-making process.

Check Structural Integrity

Be alert for:

• Cracks in walls or ceilings

• Signs of dampness or water damage

Review Functionality

Test key systems, including:

• Plumbing and water pressure

• Electrical outlets, switches, and lighting

Consider Future Potential

Think beyond the present by assessing:

• Renovation or extension possibilities

• Land size and long-term flexibility

Understand the Buying Process

Familiarise yourself with the standard steps involved in purchasing property in Australia.

Making an Offer

Once you’ve found the right home, you’ll typically:

• Submit a written offer (or bid at auction)

• Negotiate price and contract terms where applicable

Contract of Sale

Review the Contract of Sale carefully, paying attention to:

• Settlement timeframe

• Any conditions, such as finance or inspection clauses

Finalising the Purchase

Before settlement, ensure you:

• Complete building and pest inspections

• Finalise loan approval with your lender

Know Your Rights and Responsibilities

Buyer Protections

Australian Consumer Law offers protections, including:

• Disclosure requirements for known property issues

• Cooling-off periods (subject to state regulations)

Ongoing Obligations

After purchase, homeowners are responsible for:

• Property maintenance and upkeep

• Council rates, utilities, and insurance

Explore First Home Buyer Grants and Schemes

First home buyers in Australia may be eligible for government assistance, such as:

First Home Owner Grant (FHOG)

A state-based grant for eligible buyers purchasing new homes or building.

First Home Guarantee (formerly FHLDS)

Allows eligible buyers to purchase with as little as a 5% deposit without paying LMI.

State-Based Incentives

Depending on your state or territory, these may include:

• Stamp duty concessions or exemptions

• Building and renovation grants

Plan for the Future

Buying a home is a long-term commitment, so it’s important to think ahead.

Resale and Growth Potential

Consider:

• Location desirability

• Long-term property market trends

Lifestyle Changes

Plan for possible changes such as:

• Growing family needs

• Career moves or relocation

Conclusion

Purchasing your first home in Australia can be complex, but with the right preparation and guidance, it’s an achievable and rewarding experience. By understanding your finances, researching the market, working with professionals, and inspecting properties thoroughly, you’ll be well positioned to make confident decisions.

Take the first step by reviewing your budget and exploring your options. Happy house hunting!