Stepping into the property market for the first time can be equal parts exciting and overwhelming. Whether you’re planning to settle into your dream home or invest in your first property, it’s crucial to start with the right knowledge.
As experienced buyers agents in Australia, we’ve seen too many first-time buyers rush in without asking the right questions—only to face delays, budget blowouts, or post-purchase regret.
This guide walks you through the key questions to ask when buying your first home—from understanding your finances to choosing the right property and navigating the buying process.
Why Asking the Right Questions Matters
Buying property is one of the biggest financial commitments most Australians will ever make. Asking smart, informed questions early in the journey helps you:
- Set realistic expectations
- Avoid common pitfalls
- Save time and money
- Make confident, informed decisions
Let’s get started.
1. What Can I Actually Afford?
Before falling in love with a property, get a clear picture of your borrowing power. Your deposit, income, existing debts, and credit history all impact how much you can borrow.
Use tools like our borrowing power calculator to get an estimate.
Follow-up Questions to Ask:
- What is my borrowing limit based on current income and debt?
- How much should I budget for upfront costs (e.g. stamp duty, legal fees, inspections)?
- What are my monthly repayments at today’s interest rates?
2. Should I Buy a New or Established Property?
New homes offer modern layouts and low maintenance, while older homes can present renovation opportunities and established locations.
Questions to consider:
- Will I qualify for government incentives (like the First Home Owner Grant) with a new build?
- Is the property likely to appreciate over time?
- What are the maintenance costs or potential repair risks?
If you’re an investor, you might also want to explore how to minimise tax by investing in property.
3. Am I Buying in the Right Location?
Location is everything. It impacts long-term value, lifestyle, rental yield, and growth potential.
Ask these questions:
- What are the local property trends and median prices?
- Is there strong infrastructure, schools, transport, or planned developments nearby?
- What’s the rental demand if I choose to rent it out?
Explore our insights into investment hotspots in Australia for ideas on high-growth suburbs.
4. Do I Need a Buyer’s Agent?
First-time home buyers often assume they need to do it all themselves. But a professional buyer’s agent in Sydney, Brisbane, or wherever you’re buying, can represent your interests, negotiate better deals, and save you time.
Find out why you should use a buyer’s agent.
Ask Yourself:
- Am I confident negotiating with real estate agents?
- Do I understand local market value?
- Can I access off-market properties?
5. What Should I Look for During an Inspection?
Home inspections are a key part of the due diligence process.
Important things to check:
- Structural integrity (cracks, water damage, pests)
- Functionality of utilities and appliances
- Compliance with building codes
- Noise, lighting, and ventilation
Consider paying for a professional building and pest inspection—it can save you thousands in hidden repairs.
6. Are There Any Hidden Costs?
It’s not just about the deposit and purchase price. Be aware of:
- Stamp duty (use our stamp duty calculator)
- Lender’s mortgage insurance (LMI)
- Legal fees and conveyancing
- Council and water rates
- Strata fees (for units)
7. How Can I Improve My Credit Score Before Applying for a Loan?
If you’re financing your purchase with a home loan, your credit score matters. Start improving it early by:
- Paying bills on time
- Reducing credit card debt
- Limiting new credit applications
Check your status with our guide to credit score checks in Australia.
8. Am I Eligible for Government Incentives?
First home buyers may be eligible for:
- First Home Owner Grant (FHOG)
- First Home Guarantee (formerly FHLDS)
- Stamp duty concessions
- Super Saver Scheme
Ask your broker or buyer’s agent to walk you through what’s available in your state.
9. Is Now the Right Time to Buy?
Market timing is less about “when” and more about “how prepared” you are. That said, understanding interest rates, housing supply, and local demand can help you make better decisions.
Keep in mind:
- Rising interest rates reduce borrowing power
- Low stock levels can lead to bidding wars
- Off-market properties can offer better value—especially with help from a buyer’s agent
10. What Happens After I Make an Offer?
The process doesn’t end once your offer is accepted.
You’ll need to:
- Finalise your loan approval
- Complete property inspections
- Sign legal contracts
- Pay your deposit
- Prepare for settlement
A buyer’s agent or conveyancer will guide you through these steps to ensure a smooth transaction.
FAQs: First-Time Home Buyer Questions and Answers
1. What’s the difference between pre-approval and unconditional approval?
Pre-approval is a lender’s estimate of how much you can borrow, while unconditional approval means your loan is formally approved after property and income checks.
2. Do I need a 20% deposit to buy my first home?
Not necessarily. Some lenders allow as low as 5–10%, but this may trigger LMI and higher interest rates.
3. Can I buy my first home as an investment property?
Yes, you can. However, you may lose access to some first-home buyer incentives. Always speak to a finance expert first.
4. How do I know if a property is fairly priced?
Research recent sales in the area, get a property valuation, or work with a qualified buyer’s agent who understands local market trends.
5. What is a cooling-off period?
It’s a set number of days after signing the contract where you can withdraw from the sale (state laws vary). Penalties may apply.
Final Thoughts: Be Informed, Not Overwhelmed
Buying your first home doesn’t have to be confusing or risky. By asking the right questions, getting professional help, and doing your homework, you’ll be in a strong position to secure a property that fits your budget, lifestyle, and long-term goals.
Need help from a trusted buyer’s agent in Australia?
The Brokerage Connection is here to guide you through every step—from pre-approval to settlement and beyond.
Ready to make smarter property decisions?
Contact The Brokerage Connection today for tailored advice and expert support on your home buying or investment journey.