Experts believe that 2025 might be a good year to get in quick and buy a new home – particularly as a first home buyer. Interest rates are likely to decline somewhat. Though some areas are still growing, across Australia housing prices have decreased, for example, down 0.17 percent in December. Experts also believe that as housing cost growth slows, incomes will catch up, meaning we’ll be in a stronger position to buy a new home.
All great news for first time home buyers!
But regardless of the economic conditions, when it does come time to buy your first home it might feel as bewildering as it is exhilarating. One the one hand, there are rooms to decorate, hooks to hang and gardens to plant. But on the other, there are conveyancers to meet, budgets to follow and fine print to read.
If you are planning to get into the property market in 2025, make sure you read our first time home buyer checklist. We break down the process into easy, manageable items and of course, we’re always here to help.
First things first, can you realistically afford to buy a property? Get brutally honest with yourself and consider your current state of finances.
You will need to calculate whether you have enough for a deposit and a sustainable way to meet the repayments. Of course you will also want to look at your borrowing capacity.
Take a close look at your debts and expenditure. Consider where you could make improvements to get into your own home sooner. (Or at least make the loan repayments less stressful.) Are there any savings-drainers you could cut back on? Could you consolidate your debts?
A financial expert will be able to help you if you need support.
The market is changing all the time. An important part of your first time home buyer checklist is gaining a solid understanding of the current state of the market.
Read up on interest rates and where experts think they are headed in the future. Remember, you may have this home loan for 20 to 30 years, so it is wise to think ahead. If interest rates rise and your repayments increase, will you still be able to afford the loan?
Fortunately for buyers, many experts are predicting interest rate cuts for February 2025. Rates are also expected to hold or drop further for the remainder of 2025.
The 2025 federal election may also be helpful for buyers, with housing affordability likely to be a key topic.
KPMG’s Residential Property Market Outlook predicts that house price growth will be less than that of 2024. It expects that unit price growth will remain much the same as last year. Unit prices are expected to ‘modestly outpace’ house prices over the next two years.
There are a number of financial assistance options in 2025 available to help you get into your own home. It’s worth checking them out to assess your eligibility.
First Home Owner Grant (FHOG): The FHOG is a national initiative aimed at helping first time home buyers, which is funded by individual states and territories. Here in Queensland, the one-off grant was doubled to $30,000 for new homes until 30 June 2025 (the deadline is coming up quickly too, so don’t delay in jumping on this).
It can be paid at different times, so it’s best not to rely on it for your deposit. The value of your new home must be less than $750,000.
First Home Guarantee (FHBG): The FHBG is part of the federal government’s Home Guarantee Scheme (HGS). There are 35,000 places available for the 2024-25 financial year.
This initiative allows a home buyer to purchase a property with as little as 5% deposit without playing Lenders Mortgage Insurance (LMI). This is because Housing Australia will guarantee up to 15% of the home loan through a Participating Lender.
Regional First Home Buyer Guarantee (RFHBG): The RFHBG is also part of the federal government’s Home Guarantee Scheme (HGS). It works similarly to the FHBG but is applicable to home buyers in regional areas. There are 10,000 RFHBG places available for the 2024-25 financial year.
Family Home Guarantee (FHG): The FHG is also part of the federal government’s Home Guarantee Scheme (HGS). This initiative helps eligible single parents / legal guardians of at least one dependent to buy a home. Successful applicants can purchase a property with as little as 2% deposit without paying LMI. There are 5000 FHG places available for the 2024-25 financial year.
If you’re not eligible for the above schemes, there are other options available. Check out the Queensland housing finance loan and/or its Regional Trial. You may also be eligible for the first home transfer duty concession in Queensland. Recent legislative changes mean you can now enjoy this concession even if you rent out part of your home.
Next on your first time home buyer checklist is to consider your needs and wants for your ideal property.
Draw up a list of your non-negotiables. These could include:
Next come the bonus features. These could include:
Identifying what is important will help you to identify exactly what you are looking for and let you set a realistic budget.
Choose a cluster of suburbs that would suit your family’s needs, based on local schools, work, facilities etc. Even if you’ve done this research in the past – do it again. Things change quickly and some suburbs that you might not have considered previously, might be just what you’re looking for now.
Become an expert on similar properties in your chosen location. You want to develop a solid understanding of the median price for your ideal property so you can identify a good deal.
Get on the texting/mailing lists of local real estate agents so you can stay up to date on local sales. Set up a saved search on real estate websites, so you can be alerted to properties in the area.
A good team to guide you through the home finance journey will be worth its weight in gold.
Mortgage brokers are not required of course. But using an expert can significantly ease your stress during the process. For example, our team will help you review your personal situation and find the right home loan for your needs. Pre-approval is often a first step as this can help you understand your budget and guide your home search.
We will also support you during the loan application process, help you pull your documents together and complete your loan application. Plus with nearly 50 different lenders and hundreds of loan products on tap, we can help you find the best deal for your situation.
When it comes to finding the right home, a buyer’s agent can be an invaluable part of your team. While there is an investment required for their services, as a first home buyer you often stand to gain the most from their expertise. They can help you navigate the market, find suitable properties (in your budget) and even help you negotiate a better price and bid at auction.
If having a full buyer’s agent service isn’t in your budget, many often offer an abridged version. For example, they might come onboard just to assist you with negotiations.
At this stage, a reputable building and pest inspector can help reassure you there aren’t any significant issues with a home before you make an offer. You will also need an expert conveyancer or solicitor to assist you to prepare all of the legal conveyancing documents required. This includes the Contract of Sale for the property.
As your mortgage broker we can help introduce you to our trusted professional team which will include buyer’s agents, building and pest inspectors, conveyancers, solicitors and more.
Pre-approval is not vital but it will give you a leg up when it comes to nabbing your dream home.
And choosing the right home loan can potentially save you thousands of dollars and take years off your mortgage. It is crucial that you choose one that suits your needs. It is wise to secure pre-approval only about three months before you’re ready to buy as they can go stale.
It’s important to note that there is a difference between a pre-approval and approvals in principle. The terminology can be lender specific, so check with your broker on the meaning of pre-approval – and the necessity for you (or otherwise).
Congratulations on ticking off all of the necessary steps. You are now ready to buy your first property. From here, your team of experts will be able to help you complete your home finance journey.
Are you worried about ticking off your first time home buyer checklist?
The Stapleton Finance team has decades of experience helping first time home buyers get into their own homes. We also have more than 40 lenders on our books, so we can find the right home loan product for your situation.
Get in touch so we can help you today!
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