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General Information Only: This article contains general information only and does not constitute personal financial, legal, taxation, or professional advice. The information provided is based on Australian law and regulations as understood at the time of writing.
Not Financial Advice: The content does not take into account your individual objectives, financial situation, or needs. Before making any property purchase or financial decision, you should:
Verify all current information on official government websites, including:
- Australian Securities and Investments Commission (ASIC)
- Australian Taxation Office (ATO)
- State Revenue Offices (relevant to your state/territory)
- First Home Buyer Government Resources
Consult with licensed and qualified professionals before making decisions:
- Licensed Financial Adviser (for financial and investment advice)
- Licensed Conveyancer or Solicitor (for legal and property matters)
- Registered Tax Agent or Accountant (for tax implications)
- Licensed Mortgage Broker or Bank (for loan and finance matters)
Regulatory Compliance: Under Australian law, only individuals or entities holding an Australian Financial Services (AFS) licence or authorisation can provide personal financial product advice. This article does not constitute such advice.
Information Currency: Laws, regulations, government schemes, grants, tax rates, and lending criteria change regularly. Information in this article may become outdated. Always verify current details through official government sources and licensed professionals before making decisions.
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The Common First-Timer Mistake When Buying Your First Home
Whether you're planning to buy a house or an apartment, most first-timers start wrong. They skip essential tips, property check steps, and government schemes like:
- Check mortgage rates online
- Browse property listings
- Calculate what they can afford
- Talk to an agent
This sequence sets you up to fail. Smart buyers follow a different path and explore support options differently.
The Right Order
Phase 1: Know Your Numbers (Weeks 1-4)
Before looking at homes, work out three key numbers.
1. Your Debt-to-Income Ratio Add up all your debts. Include the mortgage you want. This should be below 30-35% of your income. Understanding your credit score also matters.
Lower is better. A ratio of 28% gets you much better rates than 35%.
2. Your True Deposit Government schemes can cut your needed deposit from 20% to as low as 5%. This is one of the key strategies for entering the market.
Check these grants and support options:
- Home Guarantee Scheme
- State First Homeowner Grants (state-based programs)
- Help to Buy (check if available)
- Government Scheme Calculator - see what you qualify for
Rules change often. Check firsthome.gov.au for current details and eligibility.
3. Your Hidden Costs Beyond the deposit, budget for:
- Stamp duty (or exemptions for first buyers)
- Legal fees ($1,500-$3,000)
- Building and pest inspections ($400-$800). Review our home inspection checklist 156 items to understand what professional inspectors cover and identify potential issues early
- Moving costs
- Connection fees
- Apartment credit check fees if renting while saving (rental applications)
- Property check and professional inspection costs
Phase 2: Research Areas (Weeks 5-8)
The suburb you think you want may not be best. Complete a thorough property check of each target area.
Work with a buyer's agent to check:
- Crime rates
- School quality
- Price trends
- Council plans
- Transport projects
One couple saved $89,000 by moving to a nearby suburb with better growth.
Don't get attached to an area before doing research.
How to View Homes
The 3-5-7 Rule
- View at least 3 homes
- Try for 5 viewings
- Never view more than 7 in one day
After 7 homes, your brain gets tired. Bad homes start to look good.
What to Check During a Tour
First 90 seconds: Your gut feeling about the street and front yard. Trust this.
Minutes 2-8: Check systems. Turn on taps. Test power points. Check heating/cooling.
Minutes 9-15: Check systems. Turn on taps. Test power points. Check heating/cooling. Watch for red flags buying house issues.
For homes built before 1990: Ask about asbestos. Common in insulation, roofing, and walls. Removal costs $5,000-$30,000+ and is legally required before renovation. Include an asbestos inspection ($150-$400) if the building and pest inspector doesn't cover it.
Last 5 minutes: Open windows. Listen. How's the noise?
Take photos. Write notes. Compare homes later. During every viewing, watch for critical warning signs. Our guide on red flags buying house covers 31 deal-breakers that signal structural failures, hazards, or major expenses you should never ignore.
Making an Offer
Smart buyers use three numbers:
1. Market Value Offer Based on recent sales of similar homes nearby.
2. Competitive Offer 2-4% above market value. This is your sweet spot.
3. Walk-Away Number Your maximum. Based on what you can truly afford over 10 years.
Never go above #3. Ever.
Tips for Making Your Offer Stand Out
Here are essential tactics that make a difference:
- Get pre-approval first (critical step when buying your first home)
- Offer fewer conditions
- Offer a fast settlement (30-45 days)
- Consider pre-auction offers to avoid bidding wars
Sellers often prefer buyers with solid finance over cash investors. These strategies help you compete. In competitive markets, consider whether a buyers agent could help you secure properties before they hit the open market.
Before Settlement
Step 1: Final Inspection
72 hours before settlement, complete your final property check again. Follow our home buying checklist 23 steps to ensure nothing is missed.
- Run all taps
- Test all switches
- Check windows and doors
- Look for new damage
This property check is your last chance to back out if you find big problems.
Step 2: Title Search
Your conveyancer does this. It confirms:
- No debts on the property
- No legal issues
- Clear ownership
Make sure your building insurance starts from settlement day.
Step 3: Settlement Statement
Read every fee. Common errors include:
- Wrong rate calculations
- Duplicate charges
- Bank mistakes
Ask your conveyancer to explain anything unclear.
Tips for Success
Focus on these core principles:
Do your research first Know your numbers before looking at homes. This is the most important advice.
Don't rush Take time to view homes properly.
Stay within budget Set a maximum and stick to it. One of the essential rules.
Use government support Check all available grants to reduce your deposit requirements.
Get professional help A mortgage broker, buyer's agent, and conveyancer are worth the cost.
Trust the process Systematic buyers pay less and are happier with their purchase. If you're already feeling stressed, revisit these basics before making your next move.
First Apartment Checklist vs First Home: Understanding Your Options
Many newcomers are weighing whether to buy a house or an apartment. If you're considering an apartment as your first property, you'll need both this guide and a solid first apartment checklist to cover all bases.
When a First Apartment Makes Sense for First Time Home Buyers
Apartments may suit new buyers who:
- Work in inner-city areas
- Want lower maintenance responsibilities
- Have a smaller deposit
- Prefer lock-up-and-leave lifestyle
Essential items for your apartment checklist for first apartment purchases:
- Complete a property check of the building condition
- Check strata fees (shared costs for maintaining common areas in apartment buildings) and what they cover
- Review strata meeting minutes for building issues
- Understand by-laws and restrictions (critical apartment checklist for first apartment)
- Inspect common areas and facilities
- Verify apartment credit check requirements if subletting allowed
A comprehensive checklist for first apartment buying helps avoid costly mistakes specific to unit ownership. Your first apartment checklist should cover both purchase and rental scenarios.
New Apartment Checklist for Buyers
If buying a new apartment off the plan, your new apartment checklist should include:
- Developer reputation - Research past projects and completion quality
- Contract review - Have a solicitor check sunset clauses (deadlines that let either party cancel if construction isn't finished on time)
- Deposit protection - Ensure funds are held in trust
- Defect periods - Know your rights for repairs
- Strata forecasts - Review estimated ongoing costs
- Tenant screening - Understand apartment credit check processes if you plan to rent it out
Whether you're using a checklist for first apartment buying or a new apartment checklist for off-the-plan, the financial preparation steps remain similar. Have your apartment credit check documents ready if renting initially. Both require understanding your deposit requirements, exploring government schemes, and getting professional inspections before committing.
For renters planning to buy eventually, understanding what essentials you'll need helps while saving for your first home purchase.
Your First Apartment Checklist: Integration with Home Buying
Many first time home buyers start their property journey as renters. Your first apartment checklist experience teaches valuable skills for eventual ownership.
Moving to New Apartment Checklist Skills That Transfer to Buying
Organisation skills from your apartment checklist for first apartment:
- Document management (you'll need even more for a purchase)
- Timeline planning (settlement has fixed deadlines)
- Budgeting for unexpected costs
- Coordinating multiple parties
Your moving to new apartment checklist experience prepares you for the complexity of purchasing.
New Apartment Checklist Items vs Home Buying Checklist Items
While your new apartment checklist essentials focus on furniture and setup, your home buying checklist focuses on:
Financial preparation:
- Deposit savings ($65,000-$200,000+ depending on price)
- Pre-approval process
- Ongoing cost calculations
Due diligence:
- Building and pest inspections
- Contract review
- Title searches
Legal requirements:
- Conveyancing
- Insurance arrangements
- Settlement procedures
Both require systematic approaches. Your first apartment checklist teaches the discipline needed for home purchase success.
Apartment Checklist for First Apartment Buyers: When to Transition from Renting
Signs You're Ready to Move from Renting to Buying
Financial indicators:
- Saved 10-20% deposit plus emergency fund
- Income stable for 2+ years
- Debt-to-income ratio below 35%
- Can afford mortgage plus 20% buffer for rate rises
Life indicators:
- Likely to stay in area 5+ years
- Career relatively settled
- Family planning considerations addressed
- Ready for maintenance responsibilities
Market indicators:
- Rent vs buy calculation favours buying
- Found suitable properties within budget
- Market conditions appropriate for entry
Using Your First Apartment Checklist Experience
Your first apartment checklist experience should inform your buying approach:
What worked when renting (apply to buying):
- Systematic property inspection approach
- Documentation of condition
- Budget tracking for housing costs
- Understanding of lease/contract terms
New apartment checklist items to carry forward:
- Property check habits (now more thorough for purchase)
- Move-in inspection skills (critical for pre-settlement)
- Budget management discipline
First Time Home Buyer Programs: Government Support Options
Understanding government support is critical for first time home buyers. These programs can significantly reduce your deposit requirements.
Home Guarantee Scheme
What it offers:
- Buy with 5% deposit
- No Lenders Mortgage Insurance
- Government guarantees remaining 15%
Who qualifies:
- First home buyers (and some single parents)
- Income under $125,000 (single) or $200,000 (couple)
- Property under price caps
How to apply: Through participating lenders. Check Housing Australia for current details.
First Home Owner Grant
What it offers:
- Cash grant of $10,000-$30,000 (varies by state)
- One-time payment at settlement
Who qualifies:
- First home buyers only
- Usually requires new build (not established)
- Property under state price caps
Check your state revenue office for specific amounts and rules.
First Home Super Saver Scheme
What it offers:
- Save deposit through superannuation
- Tax advantages on contributions
- Withdraw for first home deposit
How it works:
- Make voluntary super contributions
- Apply to withdraw (up to $50,000)
- Use for home deposit
Check ATO for current limits and process.
Stamp Duty Concessions
Most states offer stamp duty relief for first home buyers:
- NSW: No stamp duty under $800,000
- VIC: Concessions up to $600,000
- QLD: Concessions up to $500,000
- Other states vary
These concessions save $15,000-$40,000+ for qualifying buyers.
New Apartment Checklist Essentials for First Time Home Buyers
If you're buying an apartment as your first home, your new apartment checklist essentials must expand beyond rental considerations.
Ownership-Specific New Apartment Checklist Items
Strata investigation (critical new apartment checklist item):
- Request strata inspection report
- Review last 2 years of meeting minutes
- Check capital works fund balance
- Understand upcoming levies and projects
- Review by-laws carefully
Building condition (add to your apartment checklist for first apartment):
- Building age and construction type
- Recent or planned major repairs
- Building defect history
- Insurance claims history
Financial analysis (new apartment checklist essentials):
- Strata levy history and trends
- Special levy history
- Compare levies to similar buildings
- Factor levies into affordability calculations
Apartment Checklist App Recommendations
While no single apartment checklist app covers everything, consider using:
For inspection documentation:
- Camera app with timestamp
- Notes app for observations
- Voice memo for recording findings
For organisation:
- Spreadsheet apps for comparing properties
- Document storage for reports and contracts
- Task manager for settlement deadlines
Your apartment checklist app approach should integrate with your broader home buying documentation system.
Common First Time Home Buyer Mistakes
Mistake 1: Skipping Pre-Approval
Getting pre-approval before searching:
- Shows sellers you're serious
- Confirms your budget
- Speeds up the offer process
- Prevents disappointment from looking above your range
Mistake 2: Using Maximum Borrowing Capacity
Banks approve you for the maximum. Using it all:
- Leaves no buffer for rate rises
- Creates mortgage stress risk if you lose your job
- Prevents saving for emergencies
- Limits lifestyle flexibility
What if you lose your job? Build 3-6 months of mortgage payments as emergency savings ($12,000-$30,000 for a typical $500,000 loan). Most banks start foreclosure proceedings after 3 missed payments.
Stay 10-20% below your maximum approval.
Mistake 3: Forgetting Hidden Costs
Beyond deposit and stamp duty, budget for:
- Legal/conveyancing: $1,500-$3,000
- Building/pest inspection: $600-$1,000
- Moving costs: $2,000-$6,000
- Immediate repairs: $3,000-$8,000
- Council rates: $1,500-$3,000 yearly
- Insurance: $1,500-$2,500 yearly
- Maintenance reserve: $5,000-$10,000 yearly (1-2% of property value)
Mistake 4: Ignoring Market Cycle Risks
Property values can fall. Australian property markets are cyclical:
- Perth properties fell 15% (2014-2019)
- Sydney declined 10% (2017-2019)
- Darwin dropped 30% (2010-2020)
Why this matters: If you need to sell within 5 years during a downturn, you might owe more than the home is worth (negative equity). This makes moving for work or upgrading difficult.
Protection strategy: Plan to hold property for 7-10+ years minimum. Build equity quickly by making extra repayments early.
Mistake 5: Emotional Decision-Making
Signs of emotional buying:
- Offering above your limit
- Skipping inspections to win
- Ignoring red flags
- Rushing because of FOMO (Fear of missing out)
Data-driven decisions protect your financial future.
Mistake 6: Not Using Professional Help
Worth the cost:
- Mortgage broker (often free to you)
- Conveyancer/solicitor ($1,500-$3,000)
- Building inspector ($400-$700)
- Buyer's agent ($10,000-$20,000 optional but valuable)
These professionals prevent mistakes that cost far more than their fees.
Your Next Steps as a First Time Home Buyer
Immediate Actions
- Check your credit report - Fix errors before applying for loans
- Calculate your true budget - Include all costs, not just mortgage
- Research government programs - See what you qualify for
- Start saving systematically - Automate deposit contributions
Within 1-3 Months
- Get mortgage pre-approval - Know your borrowing capacity
- Research target suburbs - Analyse market data and growth patterns
- Build your professional team - Broker, conveyancer, inspector
- Start viewing properties - Learn what's available in your range
When Ready to Offer
- Complete due diligence - Inspections, searches, contract review
- Set firm price limits - Based on data, not emotion
- Prepare your offer strategy - Know when to negotiate, when to accept
- Have funds ready - Deposit accessible for exchange
The first time home buying journey takes 6-18 months for most buyers. Start preparing now, even if purchase is months away. For more on avoiding mortgage stress and common mistakes, see our first home buyer Australia guide.