First Home Buyer Guide
A data-backed guide for first home buyers in Australia. From budgeting and stamp duty to suburb selection and settlement.
Step 1: Know your numbers
Before you look at a single property, get clear on what you can actually afford. This means understanding your borrowing capacity, stamp duty costs, and ongoing ownership costs — not just the purchase price.
The affordability checklist
- Get a pre-approval from your lender (not just an online calculator)
- Calculate stamp duty for your state using the official calculator
- Budget for conveyancing, building inspections, and pest reports ($3,000–$5,000)
- Factor in Lenders Mortgage Insurance (LMI) if your deposit is under 20%
- Check if you qualify for First Home Owner Grant or stamp duty concessions in your state
Step 2: Pick your suburb with data
Most first home buyers pick suburbs based on where their friends live or where they saw a listing on Domain. That is not a strategy. Use these data points instead:
What to look at
- Median price trend (5yr) — Is the suburb growing or stagnating?
- Days on market — Under 30 days = high demand
- Vacancy rate — Under 2% = tight rental market (good for future investment value)
- Infrastructure pipeline — New train stations, hospitals, or schools within 5km?
- Population growth — Is the area attracting people or losing them?
Step 3: Inspect with a checklist
Emotions run high at open homes. A checklist keeps you grounded.
- Water damage signs (stains, bubbling paint, musty smell)
- Structural cracks (anything wider than a coin is worth investigating)
- Natural light and ventilation
- Noise levels (visit at different times)
- Car parking and street traffic
- Mobile reception inside the property
Step 4: Make an offer backed by research
Use recent comparable sales (not listing prices) to determine fair value. Your conveyancer or buyer's agent can pull these. If the asking price is significantly above recent comps, you need a data-driven reason to go higher — or walk away.
Decision framework
- Can I afford the repayments if rates rise 2%?
- Does the suburb data support growth over 5–10 years?
- Have I had a building and pest inspection?
- Am I buying because the data supports it, or because I feel pressure?
- Would I be comfortable holding this property for 7+ years?
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