First Home Buyer Guide: What to Know Before Buying Property in NSW

Buying your first property is exciting, but it can also feel overwhelming. Between finance, inspections, contracts, government schemes, and settlement costs, there is a lot to consider before making an offer.

The good news is that with the right preparation and advice, you can move forward with confidence and avoid many of the common pitfalls first home buyers face.

This guide covers some of the key things every first home buyer in NSW should know before getting started.

Understand your budget before you start looking

Many first home buyers focus on the purchase price, but there are often additional costs that need to be factored into your budget.

Depending on your circumstances, these may include:

• Stamp duty
• Conveyancing costs
• Building and pest inspections
• Strata report inspections
• Lender fees
• Moving costs
• Loan establishment fees
• Lenders Mortgage Insurance (LMI)

Having a clear understanding of your total budget from the outset can help avoid disappointment later in the process.

Understand your finance position

Before attending inspections or making offers, it is important to understand your financial position clearly.

This may involve speaking with a mortgage broker, lender, accountant, or financial adviser depending on your circumstances.

Whether you are borrowing, purchasing through a trust or SMSF, receiving family assistance, or even where no finance is required, understanding your position early helps you act confidently when opportunities arise.

It is also important to understand the difference between pre approval and formal approval. Pre approval can be a helpful starting point, but it does not guarantee the lender will approve a particular property.

Government schemes and concessions

There are various government schemes and concessions available to eligible first home buyers in NSW.

These can include:

• Stamp duty concessions
• First home guarantee
• Shared equity schemes

Eligibility requirements and thresholds can change over time, so it is important to obtain current advice based on your individual circumstances.

At Your Move Conveyancing, we can assist eligible buyers with the relevant applications as part of the conveyancing process.

Understanding stamp duty

Stamp duty is often one of the largest additional costs associated with purchasing property.

In NSW, stamp duty is generally calculated based on the purchase price of the property, although exemptions and concessions may apply for eligible first home buyers.

Understanding whether stamp duty applies and how it impacts your budget is an important step before committing to a purchase.

Understanding Lenders Mortgage Insurance (LMI)

Many first home buyers are surprised to learn about Lenders Mortgage Insurance.

LMI is often required when borrowing with less than a 20% deposit. Despite the name, it protects the lender, not the borrower.

Depending on the purchase price and deposit amount, LMI can add a significant cost to the transaction, making it important to understand early in your property search.

What to look for during inspections

It is easy to become focused on the layout, location, and presentation of a property, but inspections are also an opportunity to identify potential issues that could become costly later.

When inspecting a property, consider checking:

Water pressure

Turn on taps and showers where possible and check that water pressure is consistent. Poor water pressure can impact everyday living and may indicate plumbing issues that are not immediately obvious.

Air conditioning and appliances

Test any included appliances and air conditioning systems to ensure they are working properly. Repairing or replacing major appliances can be costly, particularly if they form part of the property's appeal.

Signs of water damage

Look for staining, mould, swelling, or moisture around walls, ceilings, skirting boards, and inside cupboards. Water damage can sometimes indicate ongoing issues that may require further investigation.

Bathrooms and wet areas

Check the condition of grouting, silicone, and waterproofing. Bathrooms are among the most expensive areas of a home to repair, making early identification of potential issues particularly important.

Natural light and ventilation

Consider the property's orientation and how natural light moves through the home throughout the day. The way a property captures light can have a significant impact on comfort, energy efficiency, and how the home feels to live in.

Mobile reception and internet access

Check mobile reception throughout the property and investigate available internet services. Reliable connectivity can be particularly important for those working from home or relying on streaming services.

Storage space

Look beyond the styling and assess whether the property provides practical storage for your needs. Adequate storage can have a significant impact on how functional and comfortable a home feels over time.

Noise levels

Pay attention to surrounding noise from roads, neighbours, schools, public transport, or nearby businesses. Noise levels can vary throughout the day and may have a greater impact on liveability than first impressions suggest.

Neighbouring developments

A property's surroundings can change significantly over time. Before committing, check whether there are any proposed developments nearby that could affect views, natural light, privacy, traffic, or noise levels.

Important considerations for apartment buyers

If you are purchasing an apartment or townhouse, there are some additional factors worth investigating.

Strata reports

A strata report can provide valuable information about:

• Building defects
• Special levies
• Upcoming capital works
• Financial health of the owners corporation
• Ongoing disputes or litigation

Shared facilities

Some apartment complexes have shared laundries, visitor parking restrictions, or shared storage areas. Make sure you understand what is included.

Parking permits

Not all properties are eligible for council issued street parking permits. If the property does not include parking, check with the local council before committing.

Pet restrictions

If you own a pet or plan to in the future, review the strata by laws carefully to understand any restrictions or approval requirements.

Understand the contract before making a commitment

Once you find a property you are interested in, it is important to understand the contract before making a binding commitment.

A contract review can help identify:

• Special conditions
• Easements and restrictions
• Strata considerations
• Potential risks
• Additional obligations

Understanding these issues early allows you to make informed decisions before negotiating, bidding, or signing a contract.

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Buying your first property is a significant milestone. While there is plenty to think about, good preparation and the right advice can make the process far more manageable.

Understanding your budget, finance position, property requirements, and legal obligations before committing will help you make better decisions and move forward with confidence.

If you are preparing to buy your first property in NSW, our team can help review contracts, explain your options clearly, and guide you through the process from start to finish.

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