Top 2 Things First Time Home Buyers Should Know

The process of building a new home can feel overwhelming. Whether it’s navigating loans, government grants, property searches and contracts, every step requires focus and preparation. In today’s competitive Australian property market, being informed before you commit will save you time, money and stress, while also setting you up for long-term success. 

McDonald Jones Homes understands the challenges first-time buyers face. That’s why we’ve created a guide that explores two important buying your first home tips every first-time home buyer should know in Australia. While there are many details along the journey, the two most important are understanding your budget and finance options and choosing the right location and home design. form the foundation of a successful first home purchase in Australia. 
 

1.Understanding Your Budget and Finance Options

A clear, well-planned budget will act as the foundation for your home buying journey. Here’s one of our best first home buyers tips, before you start visiting display homes or looking at home designs, it is essential to know exactly what you can afford, and how you plan to finance it. 

Assess Your Financial Position

It is of crucial importance that every first time home buyer evaluates their financial health by reviewing income, confirming savings and ensuring that total debt is being managed properly. Lenders generally require at least a 5–20% deposit, depending on the loan type. A larger deposit not only reduces the loan amount but may also save you from paying Lenders Mortgage Insurance.

Next, consider home loan pre-approval. Pre-approval gives you a clear idea of your borrowing capacity and helps you shop for homes within your budget, avoiding the disappointment of becoming attached to a property that’s financially out of reach.

Be sure to plan for extra costs such as: 

• Stamp duty (though many states offer concessions for first-time buyers).
• Legal fees and conveyancing.
• Loan application or settlement fees.
• Building and pest inspections (for established homes).
• Moving and furnishing expenses.

Explore Government Grants & Incentives

The Australian Government, as well as state governments, provide several schemes to support first-time buyers:

• First Home Owner Grant (FHOG): The first-time home buyer's grant is a one-off payment available when you build or buy a brand-new home.
• Stamp Duty Concessions: Many states reduce or waive stamp duty for eligible first home buyers.
• First Home Guarantee (FHBG): Allows you to buy a home with as little as 5% deposit without paying lenders mortgage insurance.

These incentives can make a huge difference to a first time home buyer looking to build their own home. For example, McDonald Jones Homes’ affordable Everyday Range is designed with first-time buyers in mind, allowing them to get the most from their budget without compromising on style or quality.

Compare loan types and lenders

Before taking a loan, it is very important to note that not all loans are the same. Take the time to understand the difference between fixed-rate loans (which lock in your interest rate for a period of time) and variable-rate loans (which can change with the market). Each has pros and cons and your choice should depend on your financial comfort level and future plans.

Don’t be afraid to talk to different lenders offering varying rates, terms and features. Working with a mortgage broker can help simplify this process and ensure you’re getting the best deal available.

Plan for Unexpected Costs

Always include a contingency within your budget. Unexpected costs often arise during settlement, moving and even in the early stages of homeownership. Having a financial buffer prevents unnecessary stress and ensures you can focus on enjoying your new home.
 

2.Choose the right location and home design

Once your budget and financial strategy are in place, it’s time to think about location and home design. This decision will shape not only your lifestyle but also the long-term value of your investment. Looking for something more convenient? Contact our team to discuss a wide selection of home and land packages that suit your budget. 

The importance of choosing the right location

When it comes to buying your first home tips, here’s one that is often overlooked. The location of your first home plays a significant role in your day-to-day life. Here’s what you should consider: 

• Commute: How far is your home from your workplace or public transport links?
• Schools and Childcare: Essential for families now or in the future.
• Lifestyle Amenities: Proximity to shops, parks, cafes and community facilities.
• Growth Potential: Areas with planned infrastructure or strong demand can provide long-term capital growth.

For example, while a trendy inner-city apartment may suit you today, a suburban home with more space might be the more future-proof option if you plan to start a family.

Home design that fits your life

After deciding on a location, focus on choosing a home design that matches your lifestyle, both now and in the future. Here are some questions to consider: 

• Do you need extra bedrooms for a growing family?
• Would you benefit from a home office or flexible study space?
• Do you love entertaining, requiring an open-plan kitchen and living area?
• How important is outdoor space, like a backyard or alfresco area?

McDonald Jones Homes is proud to present The Everyday Range which provides versatile, stylish and affordable homes that are perfect for first-time buyers. 

Understand the buying and building process

If you’re building, it’s vital to understand each stage of the process:

• Design and Selections: Choosing your floor plan, finishes and inclusions.
• Approvals: Council and lender approvals, which can take time.
• Site Preparation and Construction: The exciting stage where your home starts taking shape.
• Handover: Final inspections and moving into your completed home.

When it comes to build quality, be sure to focus on essentials such as:

• Proper insulation and energy-efficient appliances.
• Quality roofing and flooring.
• Functional kitchen and bathroom fittings.
• Avoid chasing short-term design trends that may not age well. Instead, prioritise timeless, durable choices that add long-term value.

Home and land packages in Australia

Ready to begin your home-building journey with ease? Contact McDonald Jones Homes today for expert home designs, first home buyers tips, home financing solutions and comprehensive home building services in Australia.