First Home Buyer Ultimate Guide

Buying your first home is one of life's most significant milestones. It's exciting, nerve-wracking, and can feel overwhelming—but it doesn't have to be. With the right guidance and preparation, you can navigate the process with confidence.

As a real estate agent with over 20 years of experience helping first home buyers in Sydney's St George region, I've guided hundreds of people through this journey. This comprehensive guide distills that experience into actionable advice you can use today.

Before you start browsing properties, you need a clear picture of your finances. This includes your savings, income, expenses, and existing debts.

Most lenders require a minimum 5-10% deposit, though 20% is ideal to avoid Lenders Mortgage Insurance (LMI). For a $800,000 property in St George, that means saving between $40,000 and $160,000.

Don't forget to budget for additional costs: stamp duty (or savings from concessions), legal fees ($1,500-$3,000), building and pest inspections ($500-$800), and moving costs.

NSW offers several generous incentives for first home buyers. Understanding and utilising these can save you tens of thousands of dollars.

The NSW First Home Owner Grant provides $10,000 for eligible buyers purchasing or building a new home valued up to $600,000 (or $750,000 for new builds).

Eligibility requirements include:

Australian citizen or permanent resident

At least 18 years old

Never owned property in Australia

Must live in the property for 6 continuous months within 12 months of settlement

This is where the biggest savings are. First home buyers in NSW can receive full stamp duty exemption on properties up to $800,000, and a concessional rate on properties between $800,000 and $1,000,000.

For a $800,000 property, this saves you approximately $31,335 in stamp duty—money that can go towards your deposit or furnishing your new home.

Pre-approval (also called conditional approval) is a lender's indication of how much they're willing to lend you. It's typically valid for 3-6 months.

Having pre-approval shows sellers and agents you're a serious buyer who can move quickly. In a competitive market, this can make the difference between securing your dream home and missing out.

To get pre-approved, you'll need:

Proof of identity (passport, drivers licence)

Proof of income (payslips, tax returns)

Bank statements showing savings history

Details of existing debts

Employment verification

Now for the fun part—deciding what you want! But be realistic. Most first home buyers need to compromise somewhere.

Consider these factors when defining your criteria:

When you find the right property, it's time to make an offer. For private treaty sales, this is negotiated directly with the vendor through their agent.

Your offer should include:

The price you're willing to pay

Settlement period (usually 42 days)

Deposit amount (usually 10%)

Any conditions (finance, building inspection)

At auction, there are no conditions—you're buying as-is, with finance already arranged. Make sure you've done all due diligence beforehand.

Never skip building and pest inspections. They cost $500-$800 but can save you from a costly mistake.

Review the contract of sale carefully—ideally with a solicitor or conveyancer. They'll check for easements, covenants, zoning issues, and other potential problems.

If buying a strata property, review the strata report for any upcoming special levies or building issues.

Once your offer is accepted and contracts are exchanged, you'll pay the deposit (held in a trust account) and the property is legally secured.

During the settlement period (typically 42 days), your solicitor/conveyancer handles the legal transfer while your lender finalises the loan.

On settlement day, the balance is paid, you receive the keys, and you're officially a homeowner!