Skip links

Avoid These 15 Common Mistakes First Home Buyers Make

Buying your first home is an exciting milestone, but it can also be a complex process, especially if you’re unfamiliar with the ins and outs of the Australian real estate market. To help you navigate this journey successfully, we’ve compiled a list of the most common mistakes that first home buyers make in Australia. By being aware of these pitfalls, you can make more informed decisions and increase your chances of a smooth and satisfying home-buying experience.

Not Establishing a Realistic Budget

Heading into the property market without a clear budget in mind is a recipe for trouble. Determine how much you can afford by considering your income, expenses, and future financial goals. Factor in additional costs such as stamp duty, legal fees, and property inspections to get a comprehensive understanding of your financial capabilities.

Neglecting to Research Grants and Concessions

Australia offers various grants and concessions for first home buyers, depending on the state or territory. Failing to explore these opportunities can result in missed financial assistance that could have made your home purchase more affordable. Take the time to research and understand the grants and concessions available to you.

Check out this guide we have on the various housing programs and concessions the government has right now. Every state has different policies so make sure to check that out. 

Not Getting Pre-Approved for a Loan

Before you start house hunting, it’s crucial to get pre-approved for a home loan. Pre-approval gives you a clear idea of how much you can borrow and shows sellers that you’re a serious buyer. It also helps you avoid disappointment by ensuring you’re looking at properties within your price range.

Overlooking Hidden Costs

First-time buyers often focus solely on the purchase price and forget about other expenses associated with homeownership. Don’t overlook additional costs such as insurance, property maintenance, council rates, and utility bills. Factoring in these expenses from the beginning will give you a more accurate picture of the financial commitment involved.

Skipping Building and Pest Inspections

To protect yourself from unexpected surprises, it’s essential to invest in building and pest inspections before finalising the purchase. These inspections can uncover structural issues, pests, or potential hazards that might not be immediately visible. Ignoring this step can lead to costly repairs down the line.

Rushing the Decision

Buying a home is a significant decision that shouldn’t be rushed. Take the time to visit multiple properties, research the market, and weigh the pros and cons of each option. Rushing into a purchase without due diligence can lead to regret and financial strain in the long run.

Ignoring Location Factors

Location is crucial when buying a property, and failing to consider factors such as proximity to amenities, schools, transportation, and future developments can limit your investment potential. Think about your lifestyle needs, long-term plans, and the desirability of the area before making a decision.

Not Engaging a Qualified Conveyancer or Solicitor

Navigating the legal aspects of buying a home can be complex, which is why engaging a qualified conveyancer or solicitor is vital. They will guide you through the legal paperwork, ensure everything is in order, and protect your interests throughout the transaction.

Forgetting to Include Contingencies in the Contract

It’s essential to include contingencies, such as finance and building inspection clauses, in the contract of sale. These provisions give you the option to back out of the purchase if certain conditions aren’t met. Failing to include them can leave you financially committed even if unexpected issues arise.

Not Factoring in Future Growth Potential

While it’s crucial to find a home that meets your current needs, it’s also wise to consider its potential for future growth. Look for properties in areas with strong infrastructure development, population growth, and rising property values. This way, you can maximise your investment and potentially increase your equity over time.

Overstretching Your Finances

One of the biggest mistakes first home buyers make is stretching their finances to the limit. Remember that unexpected expenses can arise, and you should have a buffer for emergencies or lifestyle changes. Avoid the temptation to purchase a property beyond your means, as it can lead to financial stress and hinder your long-term goals.

Failing to Shop Around for a Home Loan

Securing the right home loan is crucial for your financial well-being. Don’t settle for the first offer you receive; shop around, compare interest rates, loan features, and repayment options from various lenders. Doing your due diligence can help you find the best loan that suits your needs and saves you money over the long term.

But you know what the best route is? Getting the service of a mortgage broker you can trust. Pick a mortgage broker who has a track record in making the dreams of first home buyers possible. 

Mortgage brokers are knowledgeable in the latest loan products. They can match you with a loan product that aptly answers all the needs you may have. 

That and all these other benefits you can find here are the reasons why you should be talking to a mortgage broker now. 

Not Considering Resale Value

While you may be focused on finding your dream home, it’s important to consider the property’s resale value. Life circumstances can change, and you may need to sell your property in the future. Factors such as location, property condition, and market demand can affect the resale value. Ensure you’re making a sound investment by thinking about potential future buyers.

Skipping a Final Inspection

Before settlement, it’s essential to conduct a final inspection to ensure the property is in the agreed-upon condition. This inspection allows you to identify any issues or changes since your last visit. Skipping this step can lead to unpleasant surprises upon moving in.

Not Seeking Professional Advice

Buying your first home is a significant financial decision, and seeking professional advice can be invaluable. Consider consulting with a mortgage broker, financial advisor, or real estate agent who specialises in the first home buyer market. They can provide guidance, answer your questions, and offer insights based on their expertise.


By familiarising yourself with these common mistakes made by first home buyers in Australia, you’re better equipped to navigate the home-buying process successfully. Take your time, conduct thorough research, seek professional advice, and approach the journey with a realistic mindset. Avoiding these pitfalls will help you make informed decisions, find the right property, and set yourself up for a rewarding homeownership experience.

Make your home owning journey an easy one. Talk to one of our home loan experts to kickstart this journey of a lifetime. Schedule a no-obligation consultation for free with us now.