First Home Buyer Mistakes That Cost $20,000+

Introduction: The Mistakes Nobody Warns You About

Buying your first home in Australia is exciting. It’s also one of the most financially complex decisions you’ll ever make — and the mistakes you make before and during the process can quietly cost you $20,000, $40,000, or more.

Most first home buyer guides focus on deposit size. Get to 5% or 20%. Pick your suburb. Apply for pre-approval. Done.

But the real money is lost elsewhere. It’s lost in the $28,000 stamp duty bill the buyer didn’t budget for. It’s lost in the $45,000 structural repair bill that a $600 building inspection would have flagged. It’s lost in the $18,000 in LMI that a government scheme would have waived entirely. It’s lost in the rate rise that turned a comfortable mortgage into a monthly anxiety attack.

These aren’t rare, unlucky situations. They happen to thousands of first home buyers every year — typically not because they were reckless, but because nobody clearly told them what to watch for.

This guide will. We’ll cover 12 of the most expensive mistakes Australian first home buyers make, give you real numbers for each, and walk you through a practical pre-purchase checklist that can save you a serious amount of money.

Mistake #1: Borrowing the Maximum Amount Your Lender Will Approve

This is the single most common financial trap, and it hits hardest when the market turns.

Your lender will tell you how much they’re willing to lend. That number is calculated at a stressed interest rate — typically your current rate plus a 3% APRA buffer. But just because you can borrow $900,000 doesn’t mean you should.

The real repayment calculation

Consider a couple approved for an $800,000 variable loan at 6.2% (a realistic rate in 2026):

Loan AmountRateMonthly RepaymentAnnual Repayment
$600,0006.2%$3,659$43,908
$700,0006.2%$4,270$51,240
$800,0006.2%$4,880$58,560
$800,0007.2% (+1%)$5,434$65,208
$800,0008.2% (+2%)$6,018$72,216

A 2% rate rise on an $800,000 loan adds over $1,100 per month to your repayments — that’s $13,656 extra every year.

Serviceability vs comfort

Your lender’s approval tells you what you can borrow. Your budget tells you what you should. These are not the same number. A mortgage should leave room for:

Pro Tip: Run your budget at a 2% higher rate than your current offer before committing. If that number feels uncomfortable, borrow less — not more.

Costly Mistake: Borrowing your maximum approval amount on the assumption rates won’t rise. In 2022–2024, Australian variable mortgage rates more than doubled in 18 months. Borrowers who took on maximum debt at historic lows found themselves paying $800–$1,100/month more than they’d budgeted for. Many were forced to sell.

Mistake #2: Ignoring Hidden Upfront Costs

Your deposit is not the only money you need. Most first home buyers underestimate total upfront costs by $15,000 to $40,000 — and discover the shortfall at settlement.

Realistic upfront cost breakdown: $750,000 property in NSW

Cost ItemEstimateNotes
Stamp duty (established home, non-FHB)~$28,000First home buyers under $800k: $0
Conveyancing / legal fees$1,500–$3,000Varies by complexity
Building inspection$450–$700Essential — not optional
Pest inspection$250–$400Often combined with building
Loan application & settlement fees$500–$1,200Varies by lender
Title registration (LRS fee)~$150Government fee
Home & contents insurance$1,200–$2,500 (annual)Must be in place by settlement
Moving costs$1,000–$4,000Depending on distance and volume
Immediate repairs / painting$2,000–$15,000+Often underestimated
Furniture & appliances$5,000–$20,000+Most established homes need some
Estimated total (non-stamp-duty)$12,050–$46,800

Even with a full stamp duty exemption as a first home buyer, you can expect to spend $12,000 to $47,000 on top of your deposit before you’ve even settled in.

Costly Mistake: A first home buyer in Melbourne signed a contract on an $820,000 home with a 5% deposit ($41,000) saved plus $8,000 for “extras.” At settlement, they owed $34,800 in stamp duty (not exempt above $800k VIC threshold), $2,200 in legal fees, and had immediate roof leak repairs of $6,400. They had to borrow from family to settle. The shortfall was $35,000 they hadn’t budgeted for.

Pro Tip: Budget a minimum of 5% of your purchase price on top of your deposit for upfront costs if you are not eligible for stamp duty exemptions. If you are exempt, budget at least 2%–3%.

Mistake #3: Buying Based on Emotion

Fear of missing out is the most expensive emotion in property.

When you’re at an auction watching another buyer push the price $30,000 above your limit, every instinct tells you to go one more bid. When you’ve seen 40 properties and finally find one you love, the last thing you want is for an inspection report to complicate things.

How emotion costs you money

Overpaying at auction. Auction environments are designed to create urgency. Buyers frequently pay $20,000–$80,000 above comparable sales because of competitive pressure and time scarcity. A single bad auction day can wipe out years of disciplined saving.

Ignoring red flags. Damp smell in the corners, uneven floors, DIY electrical work in the garage, fresh paint over water stains — these are all things buyers overlook when they’ve “finally found the one.” A building inspector would not overlook them.

FOMO-driven rushing. A couple who buys in panic because “the market is going up” is more likely to skip due diligence, borrow too much, and overlook location risks. The buyers who wait — who are patient and specific — consistently get better properties at better prices.

Pro Tip: Set your maximum price before you walk into any inspection or auction — and write it on your phone. When you hit that number, you stop. No exceptions. The next property will come. The next auction will happen. The money you save is real.

Mistake #4: Skipping Building and Pest Inspections

This is the mistake that turns a first home purchase into a financial disaster. And it happens more often than you’d think, particularly in competitive markets where buyers waive conditions to win a deal.

What inspections reveal

A qualified building inspector examines the property’s structural integrity, roof condition, electrical and plumbing systems, drainage, moisture levels, and general safety. A pest inspector looks for termite activity, borers, and other timber-destroying pests.

Common findings that buyers miss:

IssuePotential Repair Cost
Active termite infestation$5,000–$30,000+
Roof replacement (terracotta, flat)$15,000–$45,000
Subfloor rot or moisture damage$8,000–$25,000
Asbestos removal (pre-1990 homes)$5,000–$30,000
Cracked slab / foundation issues$20,000–$100,000+
Rewiring (full electrical)$10,000–$20,000
Drainage / sewage remediation$5,000–$40,000

A building and pest inspection typically costs $650–$1,100 combined. That is the single best $1,000 you will ever spend in a property transaction.

Costly Mistake: A buyer in regional NSW purchased a renovated weatherboard home without conducting an independent inspection, relying instead on the vendor’s building report (which was 14 months old). After settlement, a combined termite and subfloor rot problem was identified. Repair cost: $34,000. The independent inspection would have cost $780.

The apartment trap

Many first home buyers assume apartments are low risk because they’re “newer” or “managed by the body corporate.” This is wrong. Apartments can have significant defect issues — waterproofing failures, fire safety non-compliance, cladding problems, and inadequate structural design.

For apartments: always request and review the strata records, the most recent Annual General Meeting minutes, and any outstanding orders before exchanging contracts.

Mistake #5: Choosing the Wrong Loan

Not all mortgages are created equal. Choosing the wrong loan structure can cost you tens of thousands of dollars over the life of your loan — and the advertising makes it hard to tell the difference.

Fixed vs variable confusion

Fixing your rate protects you from rate rises — but it also locks you out of rate cuts and usually limits extra repayments. Many first home buyers fix when rates are already high (locking in the pain) or fix when rates are at a peak and then miss a rate-cut cycle.

Variable loans offer flexibility: you can make extra repayments, use an offset account, and refinance more easily. But they expose you to rate movements.

A split loan (part fixed, part variable) is a middle ground worth exploring with a broker.

The offset account advantage

An offset account is linked to your mortgage and reduces the interest calculated. If you have a $700,000 loan and $30,000 in your offset account, you only pay interest on $670,000. On a 6.2% loan, that $30,000 saves you approximately $1,860/year in interest — and it compounds.

Many basic/low-rate loans don’t include an offset account. Buyers chase the headline rate and lose the offset benefit.

The comparison rate trap

A home loan advertised at 5.89% with fees might have a comparison rate of 6.15%. The comparison rate factors in most ongoing fees. Always compare comparison rates, not advertised rates.

Cashback traps

Some lenders offer $3,000–$6,000 cashback to switch or apply. This sounds great. But if the loan has a higher rate or worse features, you can easily pay back the cashback in extra interest within 18 months.

Costly Mistake: A buyer took a loan with a $4,000 cashback offer at 6.45%, passing up a competing loan at 6.05% with an offset account. Over 5 years on a $650,000 loan, the 0.4% rate difference costs approximately $15,600 in extra interest — far exceeding the cashback.

Pro Tip: Use a mortgage broker to compare loans. Brokers can access hundreds of products and model the true long-term cost of each. They’re generally paid by the lender, not you.

Mistake #6: Underestimating What Interest Rate Rises Do to Repayments

Interest rates in Australia are not stable. Over the past 10 years, the RBA cash rate has ranged from 0.10% to 4.35%. In 2026, the RBA raised the cash rate again to 3.85% after a cycle of cuts in 2025 — catching many borrowers off guard.

What a rate rise does to your monthly repayments

Based on a $700,000, 30-year principal and interest loan:

Cash Rate AssumptionVariable Rate EstimateMonthly RepaymentAnnual Repayment
3.35%~5.95%$4,170$50,040
3.85%~6.45%$4,387$52,644
4.35%~6.95%$4,613$55,356
5.35%~7.95%$5,085$61,020

A 2-percentage-point rise on a $700,000 loan adds approximately $915/month to your repayments. That is $10,980 extra per year — from the same salary, in the same house, with the same expenses everywhere else.

APRA requires lenders to assess your capacity to repay at a 3% buffer above the loan rate. But being approved at that rate doesn’t mean your lifestyle will be comfortable at it.

Pro Tip: Before signing, calculate your monthly repayment at your loan rate plus 3%. If that number would cause genuine financial stress — i.e., leaving less than 10–15% of net income as discretionary — consider reducing the loan amount.

Mistake #7: Poor Credit Behaviour Before Approval (and After Exchange)

Your credit file is a snapshot of your financial behaviour. Lenders review it before issuing pre-approval and again before formal settlement approval. Damaging it in the window between pre-approval and settlement is one of the most avoidable — and devastating — mistakes a first home buyer can make.

What damages your credit and borrowing position:

Costly Mistake: A buyer exchanged contracts on a $680,000 unit with a pre-approval in hand. Between exchange and settlement (8 weeks), they bought a $32,000 car on finance to move into their new home. At formal approval, the lender declined — the new car finance reduced their borrowing capacity by $120,000. They lost their 10% deposit ($68,000) after failing to settle.

Mistake #8: Ignoring Government Schemes That Could Save You Thousands

Australia has multiple federal and state government programs specifically designed to help first home buyers. Many buyers either don’t know about them, apply too late, or assume they won’t qualify.

Schemes you may be missing

SchemePotential SavingWho It’s For
First Home Guarantee (FHBG)$10,000–$65,000 in LMI waivedAll first home buyers with 5% deposit
First Home Super Saver (FHSS)$5,000–$15,000+ in tax savingsAll first home buyers saving via super
First Home Owner Grant (FHOG)$10,000–$30,000 cashBuyers of new or substantially renovated homes
Stamp duty concessions$0–$35,238Varies by state — income and price thresholds apply
Family Home GuaranteeLMI waived on 2% depositSingle parents / guardians with dependants
Help to Buy (shared equity)Reduces loan size by up to 40%Lower-to-middle income buyers

The combined saving for a typical buyer

A first home buyer purchasing a $700,000 new home in Queensland with a 5% deposit, using the FHBG (no LMI), FHOG ($30,000), and FHSS ($45,000 over 3 years at tax savings of $8,000+) could save:

That’s money that either goes into your deposit or stays in your pocket.

Costly Mistake: A couple buying a $750,000 townhouse in NSW didn’t apply for the FHBG because they assumed — incorrectly — that their combined income of $185,000 made them ineligible. (Income caps were removed from October 2025.) They paid $23,000 in LMI instead. That $23,000 was added to their loan balance and is now costing them $1,426/year in extra interest over 30 years.

Mistake #9: Buying in the Wrong Location

The right property in the wrong location is still a mistake. Location affects your lifestyle, your travel costs, your resale value, your insurance premiums, and your rental demand if you ever need to rent it out.

Location risks first home buyers overlook

Flood and fire zones. Properties in designated flood zones carry higher insurance premiums (often $3,000–$8,000+ per year for contents and building combined) and may be difficult to sell or refinance in future. Check the flood and bushfire overlays on your council’s planning maps before buying.

Infrastructure oversupply. Apartment-heavy precincts — particularly those developed rapidly in regional cities or outer suburbs — can experience significant oversupply, softening prices and rental yields. Buying in a postcode with 2,000 new apartments under construction is a genuine risk.

Long commute costs. The “affordable suburb” 70km from the CBD might save you $150,000 on the purchase price but add $8,000–$15,000/year in fuel, tolls, and public transport. Over 5 years, that commute cost exceeds the price saving.

School zones. Families buying in specific school zones for their catchment value need to verify the zone boundaries carefully — they change. A property a few streets outside the zone may have no catchment value at all.

Pro Tip: Before committing to a suburb, check: council flood and bushfire maps; upcoming development approvals; commute cost in time and money; insurance premium quotes (call your insurer before you buy); and recent comparable sales trends over 5 years, not just 12 months.

Mistake #10: Not Understanding Strata Before Buying an Apartment

Strata property comes with ongoing fees, shared governance, and financial obligations that established home owners never face. Many first home buyers buy apartments without understanding what they’re signing up for.

What strata costs you

Administrative fund levies: Your quarterly contribution to the body corporate for day-to-day building costs (insurance, cleaning, common area maintenance). Can range from $500 to $4,000+ per quarter depending on the building.

Capital works (sinking) fund levies: Contributions to the fund that pays for major future expenses — roof replacement, lift servicing, painting. Underfunded sinking funds are a major red flag.

Special levies: When the sinking fund doesn’t have enough money for a major repair — and buildings age constantly — the body corporate can issue a special levy. These are unplanned, can be substantial, and are the strata-owner’s worst surprise.

Special Levy ScenarioTypical Cost Per Lot
External waterproofing (full building)$8,000–$25,000
Roof replacement$5,000–$20,000
Fire safety compliance upgrade$3,000–$15,000
Cladding replacement (combustible material)$20,000–$80,000+
Structural repair (post-defect report)$10,000–$100,000+

Due diligence on strata records

Before exchanging on any strata property, request and review:

A strata search and report costs $300–$500 and should be treated as non-optional.

Costly Mistake: A first home buyer purchased a $620,000 apartment in a 1990s Sydney building without reviewing the strata records. Three months after settlement, a special levy of $22,000 was issued for fire safety compliance upgrades that had been pending for two years — a fact clearly visible in the AGM minutes the buyer never read.

Mistake #11: No Emergency Buffer After Settlement

Most first home buyers pour every available dollar into their deposit. They arrive at settlement with exactly enough — and nothing left over.

Then the hot water system fails. Or the fence is blown down. Or the dishwasher dies. Or, more seriously, a job is lost.

The minimum emergency buffer

Financial advisers typically recommend 3–6 months of mortgage repayments as an emergency fund. For a $700,000 loan at 6.2%, that’s $12,500–$25,000 sitting accessible (not in your offset account, where it can be swept into the mortgage, but in a readily available account).

On top of that, budget for:

Arriving at settlement with zero liquidity beyond your deposit is a real financial risk.

Pro Tip: Aim to keep a minimum of $15,000–$20,000 in accessible savings after settlement. This is your moat against the first year of property ownership, which almost always brings unexpected costs.

Mistake #12: Trying to Time the Market Perfectly

Every year, there are first home buyers who don’t buy — because they’re waiting for prices to drop, or rates to fall, or the “right moment.”

Sometimes this caution is warranted. Often, it is not.

The real cost of waiting

While you wait:

Consider: a buyer who waited 2 years “for the market to settle” in 2020–2022 paid $150,000–$300,000 more in Sydney and Melbourne when they finally bought. The rent they paid during the wait was $40,000–$60,000 they’ll never recover.

This is not an argument to buy regardless of your financial position. It is an argument against indefinite paralysis based on market speculation.

Pro Tip: Buy when you are financially ready — not when you feel certain the market is at its bottom. No one consistently times the market, including professionals. Your readiness checklist matters far more than your market prediction.

Real-World Case Studies

Case Study 1: The Sydney Apartment With No Strata Check

Jake, 29, Sydney — $650,000 apartment purchase (2024)

Jake bought his first apartment in a 2001 block in inner-western Sydney, excited to finally stop renting. He exchanged contracts quickly in a competitive market and skipped the strata records review to avoid delays.

Six months after settlement, a special levy of $18,500 was issued per lot for external waterproofing — something that had been discussed at two AGMs before Jake’s purchase. A strata search and review ($400) would have revealed this.

Financial impact: $18,500 unplanned expense in first year. Jake funded it through a personal loan at 12.9% interest.

Lesson: Strata records are not optional reading. They contain your future financial obligations in black and white.

Case Study 2: The Overleveraged Couple

Sarah and Tom, Brisbane — $820,000 home, borrowed $779,000 (2023)

Sarah and Tom were approved for $820,000 and borrowed the maximum. At 5.6%, their monthly repayment was $4,447. Their combined take-home income was $9,800/month. The mortgage consumed 45% of their net income.

When the RBA hiked rates through 2022–2024, their repayment climbed to $5,384/month (at 7.2%) — 55% of net income. They sold 18 months after purchase.

Financial impact: Stamp duty ($32,000), legal and moving costs ($8,000), and selling costs ($20,000+) — a net loss exceeding $60,000 plus the emotional cost.

Lesson: Borrow sustainably. 30–35% of net income on mortgage repayments is manageable. 45%+ is precarious.

Case Study 3: The Buyer Who Missed Every Scheme

Priya, Melbourne — $720,000 unit purchase (2024)

Priya bought without using the FHBG (assumed income ineligibility — she earned $118,000). She paid $19,600 in LMI. She didn’t use FHSS despite having the capacity to have saved $35,000 there over 3 years (potential tax saving: $7,000+). She was eligible for Victoria’s FHOG on a new build but bought established and didn’t explore new build options.

Financial impact: $19,600 in LMI + $7,000+ in foregone FHSS tax savings = ~$27,000 that didn’t need to be spent.

Lesson: Check all government schemes before applying for a loan, not after. The FHBG has no income cap as of October 2025.

Case Study 4: The Buyer Who Skipped the Building Inspection

Michael and Jess, regional NSW — $480,000 weatherboard home (2023)

Competing with multiple buyers, Michael and Jess waived the building inspection condition to make their offer unconditional. The home looked immaculate after a recent renovation.

Post-settlement, a licensed builder found: termite damage in the subfloor (active and historical), requiring subfloor replacement and treatment ($22,000); and a partially rewired roof space that failed to meet code ($11,000 to complete).

Financial impact: $33,000 in first-year repairs. Funded through a personal loan. A combined building and pest inspection would have cost $950.

Lesson: Never waive a building and pest inspection. If the seller refuses a subject-to-inspection clause, that is itself a red flag.

First Home Buyer Financial Checklist

Use this before signing any contract of sale.

Financial readiness:

Government schemes:

Property due diligence:

Ongoing costs budgeted:

How Technology & AI Are Changing Home Buying

The information available to first home buyers in 2026 is dramatically better than even five years ago — but only if buyers use it.

AI-powered property analytics platforms (like PropTrack, CoreLogic Suburb Profiles, and Domain Insights) now provide suburb-level price trend data, estimated weekly rent, days on market, vendor discount patterns, and market temperature indicators. Buyers can identify whether a suburb is trending up, flat, or cooling before committing.

Digital building inspection services — increasingly augmented by drone surveys and 360° imagery — can flag risk areas visible before a physical inspection. Some platforms aggregate multiple inspectors’ reports to build defect profiles for entire apartment complexes, so you can check if a building has a history of structural issues before you even inspect a specific unit.

AI mortgage comparison tools can now model the total cost of competing loan products over a full 30-year term, accounting for fees, rate change scenarios, and offset account impact. The result: a genuinely apples-to-apples comparison across hundreds of products in minutes.

Automated pre-approval tools through major banks and fintech platforms mean buyers can get conditional approval in under 24 hours, often with digital income verification via open banking.

FHSS and scheme tracking is built into the ATO’s MyGov portal, allowing buyers to track their FHSS contributions and run live calculations of their eligible withdrawal amount.

The tools exist to be an extraordinarily well-informed buyer. The mistake is not using them.

Frequently Asked Questions

1. What is the most expensive mistake first home buyers make in Australia?

The most financially damaging single mistake is typically failing to account for all upfront costs beyond the deposit — particularly stamp duty, which can add $20,000–$40,000 to your total outlay. Borrowing the maximum approved amount and having no emergency buffer after settlement are close seconds.

2. How much should I budget for upfront costs beyond my deposit?

Budget at least 5% of the purchase price for upfront costs (excluding stamp duty) as a general rule. If you’re not eligible for stamp duty concessions, add a further 3%–5% of the purchase price for stamp duty depending on your state and property value.

3. Can I avoid Lenders Mortgage Insurance (LMI) as a first home buyer?

Yes — via the First Home Guarantee (FHBG). With a 5% deposit, the government guarantees up to 15% of the property value to your lender, meaning no LMI is charged. As of October 2025, there are no income caps and no place limits. The potential saving is $10,000–$65,000 depending on your purchase price.

4. Is a building inspection really necessary?

Yes — always. A combined building and pest inspection costs $650–$1,100 and can identify issues with repair costs of $10,000–$100,000+. The cost of not inspecting can be devastating, particularly for older homes, properties in flood or termite zones, or recently renovated homes where problems have been concealed.

5. What happens if I change jobs between pre-approval and settlement?

Your lender may re-assess your application. Moving from permanent employment to casual, contract, or self-employment — or moving to a new employer under a probationary period — can result in declined formal approval. Avoid changing employment between exchange and settlement unless absolutely necessary, and inform your broker or lender immediately if it happens.

6. What is the APRA serviceability buffer?

APRA requires lenders to assess your borrowing capacity at your home loan rate plus a minimum 3% buffer. This means if your loan is at 6.2%, the lender tests your ability to repay at 9.2%. This buffer is designed to protect you from rate rises — but being approved at that rate doesn’t mean it’s comfortable to live at.

7. How do I avoid overbidding at auction?

Set your maximum price based on comparable sales data before the auction — not on the day. Write it down and stick to it. Have your conveyancer review the contract before auction day (not after). If the bidding exceeds your maximum, stop. Another property will come.

8. What are the biggest risks when buying an apartment?

The three biggest strata-specific risks are: underfunded sinking funds (which lead to special levies), building defects (particularly in buildings constructed between 1995–2015), and combustible cladding (a serious safety and financial liability in some post-2000 apartment complexes). Always review the strata records before exchanging.

9. How much emergency buffer should I have after buying?

A minimum of $15,000–$20,000 in accessible savings is a practical baseline. Financial advisers often recommend 3–6 months of mortgage repayments as an emergency fund, on top of a separate maintenance budget (~1% of property value per year).

10. What is the First Home Owner Grant and how does it work?

The FHOG is a state-based cash grant for eligible buyers of new or substantially renovated homes. In 2026, grants range from $10,000 (NSW, VIC, WA) to $30,000 (QLD, TAS) depending on your state. It does not apply to established homes in most states. It can be stacked with the FHBG and FHSS.

11. Does my credit score affect my home loan approval?

Yes. Lenders assess your credit file as part of the approval process. A poor credit score (defaults, missed payments, multiple enquiries) can result in declined applications or higher interest rates. Check your credit report at least 3–6 months before applying, using Equifax, Experian, or illion.

12. What is the difference between a comparison rate and an advertised rate?

The advertised rate is the base interest rate on the loan. The comparison rate factors in most fees and charges associated with the loan (establishment fees, ongoing fees) and expresses the true cost as a single annual percentage. Always compare comparison rates when evaluating loan products.

13. Can I use the FHSS scheme and the FHBG at the same time?

Yes. The FHSS can help you save your 5% deposit tax-effectively, and the FHBG allows you to buy with that 5% deposit without paying LMI. The two schemes are designed to work together.

14. Should I fix or keep variable my home loan rate?

This depends on your financial position, your risk tolerance, and the market outlook — and is a question best answered with a mortgage broker or financial adviser. Generally: fixed rates offer certainty and protection from rises; variable rates offer flexibility (offset account, extra repayments) and the ability to benefit from rate cuts. Many buyers use a split loan to get both.

15. What is “mortgage stress” and how do I avoid it?

Mortgage stress is generally defined as spending more than 30% of gross household income on mortgage repayments. To avoid it: borrow conservatively (not the maximum approved amount), maintain a financial buffer, and stress-test your budget at a rate 2–3% higher than your current loan rate before committing.

16. What does a strata levy cover?

Strata levies cover administrative costs (insurance, maintenance, management fees) and capital works (major repairs and replacements). Special levies are issued when unexpected or planned major works exceed the sinking fund balance. You’re liable for your proportional share regardless of when the issue arose.

17. Can I negotiate on a property after a building inspection reveals problems?

Yes — absolutely. If a building or pest inspection reveals significant defects, you have legitimate grounds to renegotiate the purchase price, request the vendor complete repairs before settlement, or withdraw (if you have a building inspection condition in your contract). This is exactly why the inspection clause exists.

18. What should I look for in the strata records?

Key things to check: the balance of the administrative and sinking funds (underfunded = special levy risk); any outstanding orders, notices, or legal disputes; recent and upcoming major works; building defects and their status; and any discussion in AGM minutes of unresolved issues.

19. What is the risk of buying in an oversupplied apartment market?

Oversupply — too many similar properties available relative to demand — depresses both prices and rents. Buyers in oversupplied precincts may find the property is worth less at resale than they paid, and rental yields are lower than expected. Check development approval data for your target suburb before buying.

20. Is it better to buy a new or established home as a first home buyer?

Both have merit. New homes often attract FHOG grants, reduced or zero stamp duty in some states, and government scheme compatibility (FHBG). They may also have shorter-term maintenance costs. Established homes offer character, established neighbourhoods, and often larger land sizes. Your personal priorities, budget, and eligible government schemes should guide the decision.

Conclusion: Buy Smart, Not Emotional

Buying your first home is one of the most meaningful decisions of your life. It should also be one of your most considered financial decisions.

The 12 mistakes in this guide are not obscure edge cases. They are the patterns that repeat, year after year, among first home buyers who were excited, motivated — and insufficiently prepared.

The most important things to take from this guide:

The property market rewards buyers who are patient, specific, and financially prepared. It punishes buyers who are hurried, emotional, and over-leveraged.