Buying your first new home is one of life's most exciting and significant milestones. While it's a thrilling time, there's a lot to consider, especially when you are building or purchasing a newly constructed home.
From selecting a builder to choosing the design of your home or finding the right house and land package, it’s not always a clear-cut process.
We’ve put together this essential first home buyers advice to help you navigate the journey and find the home that’s just right for you.
Before you start signing contracts or flipping through furniture catalogues, here are 9 tips to keep in mind during the home buying (or building) process to help you make the best choice.
1. Find the right builder
As a first home buyer, you’re about to embark on an exciting journey so it makes sense to plan, research, study, enquire and then research some more! Don’t be shy; ask questions every chance you get.
How to choose the right home builder
This part of the research might seem obvious, but with so many builders to choose from, it’s worth taking your time. Some factors to consider when looking for a builder:
- Are they transparent and upfront with their pricing?
- What inclusions do they offer at no extra cost?
- Can you customise and personalise your home?
- What kind of structural warranty do they offer?
- Do they inspect your home after you've moved in?
- Are they financially stable?
If you’re building a home in Victoria and want an experienced team, Henley has more than 30 years in the business and ticks all the boxes above.
2. Understand the process
Once you've shortlisted a few builders, it’s time to understand what the home building journey looks like, from financing to land selection and contract signing.
Start by getting your finances in order. Knowing your financial position upfront gives you greater confidence when negotiating and signing contracts. A good mortgage broker, especially one who specialises in construction loans, can ensure the finance side is as smooth and stress-free as possible.
Next, learn about the stages of building, how long the build is likely to take and what decisions you’ll need to make and when. Your builder should provide a clear timeline and guide you through every step.
3. Decide between buying or building
Have you decided to buy a completed home in a new estate? Or will you start with a brand-new home design with the option to customise your floorplan and colour selections? Is the convenience of a house and land package your preferred pathway to home ownership?
Building: house and land packages
A house and land package is an attractive option for first-time homeowners. Some of the benefits include fixed pricing, site costs and luxury inclusions and guided support throughout the process. When you build with Henley, you can personalise your home with help from our in-house interior designers. Plus, you can visit Henley's design showroom as often as you like.
Buying: completed homes for sale
A completed home is another great option for taking your first step into the housing market. Our move-in ready homes are brand new and never before lived in, with expert design selections already made, and popular upgrades included. Most are ready to move into now or within 3–6 months. You'll also benefit from a fixed price contract, no progress payments, and only a 5% deposit required.
4. Make sure you *really* understand your finances
Saving for your first home means setting a budget and sticking to it. You need to know how much you require for a deposit and what mortgage repayments you can comfortably manage. Everyone’s situation is different, so make sure to be realistic.
First home buyers generally need to save a minimum of 5% of the property's purchase price. There are plenty of household budget calculators available online, and most banks and finance providers offer tools to help you estimate your mortgage repayments based on your deposit and borrowing amount.
You’ll also need a healthy credit report — your financial history, including credit card repayments, debts, and account activity. To improve it, save regularly, avoid ‘buy now, pay later’ services, and monitor your credit score.
A mortgage broker can help you:
- Understand your borrowing potential
- Explore options that suit your situation
- Compare loan products (for example a variable or fixed interest rate) and features (like offset accounts or redraw facilities)
They’ll also guide you through the legal process. A buyer’s agent can also support you by helping find the right property, negotiating on your behalf, and protecting your interests.
Always make sure you deal with licensed professionals. Check ASIC’s online register for details.
5. Know what government assistance is available
First home buyers may be eligible for several government grants and concessions.
First home buyer grants
- First Home Owners Grant (FHOG): In Victoria, eligible buyers can receive $10,000 when purchasing or building a new home valued up to $750,000.
- First Home Guarantee: An Australian Government scheme that supports first home buyers. Part of an eligible home buyer’s home loan is guaranteed by Housing Australia. This enables an eligible buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
Stamp duty concessions
Stamp duty is a government tax paid when you buy a property. It can be one of the biggest up-front costs for first home buyers.
Most states and territories offer stamp duty concessions to help reduce this financial burden. In Victoria, eligible first home buyers may qualify for the following:
- A full stamp duty exemption for homes under $600,000
- A discount for homes between $600,001 and $750,000 (reducing as the price increases).
These benefits can significantly reduce upfront costs. Check the State Revenue Office Victoria or speak with your broker or buyer’s agent for the latest criteria.
6. Consider the local market, location and liveability
Spend time researching the market and exploring the suburbs you’re interested in. Look into nearby infrastructure, schools, public transport and lifestyle amenities to get a feel for how the area supports your day-to-day needs.
Ask yourself:
- How close will you be to public transport, schools or hospitals?
- Do the local jobs and industries match your skills and expertise?
- Are there any major developments planned for the area?
- Do you like the seasonal climate and weather?
- Is your home suited to the lifestyle you want live (e.g. do you prefer a quiet neighbourhood or a busy urban environment)?
It’s also worth thinking ahead. Even if this is your first home, consider its long-term potential as an investment property. Homes in well-connected, high-growth areas may deliver stronger value over time, giving you more flexibility in the future.
Learn more about the housing market in general. Talk to a local real estate agent or sales consultant to find out what's happening in the area. Ask questions like:
- What's the median house price in this suburb?
- Is the local property market currently growing, stable or contracting?
- What prices have recently sold properties achieved?
It can also be helpful to attend a few auctions in the area to get a feel for current demand and pricing trends.
7. Understand progress payments for a new home build
If you're building a new home, you’ll likely use a construction loan with progress payments made at key milestones. This means you only pay for each stage as it’s completed, helping ease your home loan repayments during the build.
A typical progress payment schedule looks like this:
- House deposit – 5%
- Base stage – 10%
- Frame stage – 15%
- Lock-up stage – 35%
- Fixing stage – 25%
- Completion stage – 10%
Understanding these stages can help you manage your budget more effectively and ensure you're financially prepared throughout your home building journey.
8. Ask about warranties
When purchasing a newly built home it is certainly worth asking your contractor what warranties and structural guarantees apply.
Most builders provide a structural warranty (usually 6–7 years), plus support for minor defects after move-in.
All Henley homes are backed with Henley’s 50 year structural guarantee and maintenance check program.
You usually don’t need a building and pest report for a newly built home.
9. Thoroughly review the contract of sale
You've made it to the final big step before you get the keys to your first home! Before signing any contract for the property or your loan, ensure you fully understand your obligations.
- Settlement period and settlement date (the date which you need to have paid back the mortgage in its entirety)
- Cooling off period (the period of which you can withdraw from the contract of sale for your home)
- Mortgage repayment amounts and frequency (typically these can be weekly, fortnightly or monthly)
- Interest rates, fees or land tax considerations
If anything is unclear, seek professional advice before signing. Taking the time to review your contracts properly helps ensure you're financially and legally prepared for your new home.
Buying your first brand new home is a big step but with the right information, planning and support, the process can be far less stressful. By following these tips for buying your first home, you’ll be better prepared to avoid unexpected hiccups and enjoy a smoother, more confident journey to home ownership.
