Buying your first home is one of the biggest financial decisions you’ll ever make – and in today’s property market, it can feel impossible. With prices still out of reach for many Australians and interest rates fluctuating, the journey to home ownership has never felt more daunting.
But the right financial strategy and advice can make a real difference.
“Too many first-home buyers start by falling in love with a property instead of understanding their financial boundaries,” says Adam, Director of Business Advisory at Nexia Perth. “It’s meant to start with understanding your cash flow dynamics, your risk appetite, and what the next decade of your life might look like.” The home buying journey is full of personal hopes, but if your numbers aren’t right from day one, it’s not a strategy. It’s a gamble.
Get your tax and financials in order
Before you even think about open homes, get your financial records up to date. This means:
- Lodging all outstanding tax returns.
- Reviewing your income and expenses.
- Understanding your credit position.
“Banks aren’t just looking at income. They’re assessing behavioural trends, debt history, and your ability to withstand rate changes,” Adam explains. “We would advise clients to pre-empt those concerns by stress-testing their finances against different scenarios.”
Use a reputable mortgage broker
Not all brokers are created equal. A good one can help you:
- Access competitive rates.
- Understand your true borrowing capacity.
- Prepare documentation for pre-approval.
- Mortgage brokers typically don’t charge you directly, but receive a commission from lenders. You’ll often get a better deal through a broker, but to ensure they’re acting in your best interest, ask what commission they receive and whether they consider all banks equally, and get paid the same regardless of the lender.
“A good broker shapes the right structure for your situation,” says Adam. “They should be aligning your loan profile with your tax position, income forecasting and repayment buffers.”
Get pre-approval before you shop
Pre-approval gives you a clear idea of what you can afford – and strengthens your position when making an offer. It’s not a guarantee, but it sets expectations.
Buyers who skip this step risk falling in love with properties outside their means, or worse, missing deadlines during the buying process.
Set a realistic budget (and stick to it)
It’s easy to overextend when emotions are high. But remember: you’re not just buying a house, you’re buying a future with ongoing costs.
Factor in:
- Rates and strata or body corporate fees.
- Repairs and maintenance.
- Insurance.
- Renovation plans.
“Budgeting for a home isn’t about hitting your limit, it’s about knowing your thresholds,” Adam advises. “A financially sound purchase includes buffers for rate hikes, repairs and life events – not just the sticker price.”
Think long term when choosing a property
A first home isn’t always your forever home, but it should suit your next five to ten years. Consider:
- Space for family changes.
- Location and commute.
- Resale or rental potential.
“We tell first-home buyers to think like portfolio managers – balance short-term convenience with long-term resilience,” says Adam. “Location, structure, and land value often matter more than shiny finishes.”
Use available grants and schemes
Explore your eligibility for:
- WA Government First Home Owner Grant (FHOG).
- Transfer/stamp duty concessions.
- First Home Super Saver Scheme (FHSSS).
The FHSSS allows eligible buyers to release voluntary super contributions for a home deposit.
Don’t be discouraged by the market
Yes, property prices are high. Yes, many people feel locked out of the market. But good decisions come from clarity, not fear.
“Markets move, but strategy outlasts volatility,” Adam says. “People get discouraged because they start with house-hunting instead of financial modelling – we flip that approach.”
Want personal advice on your first home strategy?
Contact Nexia Perth to speak with Adam and the Business Advisory team. We’ll help you plan with confidence, not confusion.