How To Play It Smart When Entering The Property Market For The First Time

Buying your first home is one of life’s biggest milestones, and entering the property market for the first time requires careful planning and preparation. 

Even with new government incentives, success comes down to strategy. Here are some steps to position yourself to buy smart: 

• Do your research: Understand what incentives and grants apply to your situation, and research the areas you’re considering. 

• Get finance ready: Secure pre-approval early so you can act quickly when the right property comes along. 

• Complete your due diligence: Arrange building inspections, review strata reports, and ensure you are fully informed about the property before committing. 

• Be flexible: If your preferred suburb is out of reach, consider neighbouring areas. Similar homes may be available at lower prices, while still meeting your needs. 

• Plan for the long term: Make sure the home suits your lifestyle and financial goals, and that you can comfortably manage repayments even if interest rates change. 

Navigating the 2025 first home guarantee

 The recent updates to Australia’s First Home Guarantee Scheme are making homeownership more achievable for first-time buyers. With the removal of income caps and the ability to purchase with just a 5% deposit, more Australians can now enter the property market sooner, though careful planning is still essential to ensure long-term affordability. 

As of 1 October 2025, the federal government introduced several key changes: 

Key changes to the scheme

1. 5% deposit and no lenders mortgage insurance (LMI) - Eligible buyers can now enter the market with just a 5% deposit and avoid paying LMI, reducing upfront costs.
2. Removal of income caps - Previously, singles earning over $125,000 and couples over $200,000 were ineligible. These caps have now been removed, broadening access for more Australians. While easier access is welcome, careful budgeting is still essential.
3. Unlimited places - The annual cap on the number of buyers has been removed. All eligible first-home buyers can access the schemeimmediately, providing certainty and removing the stress of waiting for allocations. 
4. Higher property price caps - Property price limits have been raised to reflect current market conditions, allowing first-time buyers to access a wider range of homes in high-demand areas:

• Sydney: $1.5M 

• Melbourne: $950K 

• Brisbane: $1M 

• Perth: $850K 

• Adelaide: $900K 

• Hobart: $700K 

• ACT: $1M 

State and Territory support 

In addition to the federal scheme, states and territories offer incentives to support first-home buyers: 

• NSW: Stamp duty exemptions and the First Home Owner Grant for new homes 

• Victoria: $10,000 grant for new homes, stamp duty relief for properties up to $600,000, and the Homebuyer Fund 

• Queensland: Variable FHOG payments, stamp duty concessions, and low-deposit loan options 

• Western Australia: $10,000 FHOG and concessional duty arrangements 

• South Australia: Up to $15,000 FHOG and expanded stamp duty relief 

• Tasmania: $10,000 FHOG (new homes) and duty relief for eligible properties 

• ACT: Stamp duty concessions and the Land Rent Scheme 

• Northern Territory: HomeGrown Territory program offers $50,000 for new homes alongside duty concessions 

Many of these incentives can be combined with the federal scheme, giving buyers even greater support. Always check eligibility, timing, and property type with your broker or the relevant state revenue office. 

Helping first-time buyers get ahead 

The 2025 updates to the First Home Guarantee Scheme provide a stronger pathway into the property market, but preparation, research, and a clear strategy remain key. 

Before buying, speak with a financial advisor or mortgage broker to check your eligibility and plan your budget. For additional guidance, explore our first-time homebuyer checklist or contact your local Simon Penrose at Belle Property Wilston to take the next step with confidence. 

Contact Simon Penrose for more information
Request an appraisal: https://www.belleproperty.com/wilston/simon-penrose/request-appraisal
Phone: 0438 807 114
Email: simon.penrose@belleproperty.com