A Guide to Overcome Top Challenges First-Time Home Buyers Face

Did you know about more than 670,000 people purchased a new property in 2023? The numbers are impressive because the real estate market is far from affordable. What’s more intriguing is that first-time home buyers contribute 10% of the housing market share! 

As a first-home buyer in Australia, you upgrade your lifestyle and opt for long-term financial stability. But buying a property, especially for the first time, is no easy feat. From struggling with financial hurdles to finding the right property and location, many challenges are associated with being a first-time home buyer. 

But should that stop you from taking a step forward and investing in your dream home? No, right? And to help you, we bring a guide to help you overcome the common challenges. 

Without any further delay, let us take a look at first-home buyer tips in Australia:

1. Credit Score

A credit score is crucial if you are applying for home loans. A low credit score results in high interest rates for home loans and leaves fewer debt options. This mandates that every first-time home buyer must have a good credit score. Here’s a table to help you determine whether you have a good or bad credit score: 

Credit Score Status
0 – 459 Poor
460 – 660 Fair
661 – 734 Good
735 – 852 Very Good
853-1200 Exceptional

But what if you have a weak credit score? Worry not, here are ways to improve your credit score: 

  • The first step is to check and analyse your credit score. This gives you insights into what’s making your status excellent or poor. 
  • Your payment history is the most crucial factor defining your credit score. To improve your credit score, start paying your loans and bills promptly.
  • Experts suggest you must not exceed 30% of your credit limit.  

2. Deposit

The deposit is the total amount a buyer has to pay upfront when investing in a house. This sum typically varies from 5-20% of the house’s value. The escalating real estate prices make saving for a deposit another challenge for first-time home buyers. 

To overcome this challenge, opt for home buyer loans or mortgage options that offer low deposit options. There are many schemes in place for certain professions and by the Federal Government (HGS/FHBG Scheme) offering 5% deposit loans without any LMI

3. Choosing The Ideal Location

Choosing an ideal location for your dream home is more challenging than it seems. While it can be difficult, here are some pointers that will help you make an informed decision about the right location for your first home: 

  • The most crucial factor to take into account is budget. Investing in homes in prime locations is relatively expensive. Explore as many options as possible to find the best option that fits your budget. You can get help from first home grants & Stamp Duty concessions in Australia to assist you in the financial aspects of purchasing a property. 
  • Next, your ideal location must be safe and secure for daily use. Visit the neighborhood and interact with the locals to learn more about the locations you finalize. In addition, online research can be helpful. 
  • Check out what amenities individual locations feature. Look out for services like police & fire stations, hospitals, or emergency services. Also, confirm the availability of grocery shops, electricians, markets, gyms, etc.

In addition to the above-mentioned points, some of the important considerations include the following: 

  • Connectivity to the transportation system.
  • Distance from your workplace.
  • Development and future growth of the neighborhood.
  • Availability of leisure activities.

4. Finding The Right Property

Your first home should be welcoming and feel comfortable. And to make sure you find the right property for your family, here are some of the questions to answer:

What type of house are you looking for? Is it a small apartment or a luxurious villa? 

What is your overall budget, including the brokerage fee? 

What is the preferred size and layout of the house? 

Does the house have all the amenities? In addition to necessities, does the house feature modern features like parking, swimming pools, a patio, or a rooftop? 

What will the home’s resale value be if you sell it? 

How old and what is the current condition of the property? 


Purchasing your first home is undoubtedly challenging. The journey involves overcoming various obstacles. However, proper guidance and preparation can successfully overcome these challenges.

Our guide has outlined essential strategies and considerations for each step of the home-buying process. Remember, becoming a homeowner is not just about acquiring a property; it’s about investing in your future and enhancing your lifestyle. 

With patience, perseverance, and the insights provided in this guide, you can confidently navigate the real estate market and secure the home of your dreams.

Make your home-buying experience hassle-free with FHBA! Read more posts for a well-informed and streamlined house hunting!

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.