Buying Your First Property

Buying your first property can feel overwhelming. You're dealing with big numbers, unfamiliar terms, and pressure to “get in before it's too late.”

When I bought my first property, I started with no background in real estate. But through good guidance, research, and a few lucky breaks, I learned lessons that still apply to first-time buyers today.

Here’s a break down of what I learned and how you can apply it to your own journey.

Borrowing Fundamentals

The first step in any property purchase is understanding your borrowing capacity.

When I started, I knew nothing about home loans. A good mentor pointed me in the right direction: speak to lenders, open accounts, ask questions, and understand the basics, how deposits work, what interest rates mean for monthly repayments, and what criteria banks use to assess applications.

A mortgage broker can be invaluable in this phase. They compare options across lenders, explain the differences between products, and help you avoid missteps, especially if your financial situation isn’t straightforward.

Being financially prepared isn’t just about savings. It’s about knowing what you can realistically borrow and how that aligns with your goals.

Misleading Advice

Everyone has an opinion on property: parents, friends, agents, media. But advice isn’t always accurate or aligned with your personal goals.

Early on, I found a property I liked in McMahon’s Point. I thought it was a great opportunity, but my partner disagreed. Rather than pushing ahead, we took a step back and had a more thoughtful discussion about what we actually needed: a place we could rent easily, add value to, and live in if required.

The key lesson was that property decisions aren’t made in a vacuum. If you’re buying with someone else, you need alignment on budget, lifestyle trade offs, and the role of the property, whether it’s a stepping stone or a long-term hold.

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What to Look For in a Property

The first property we purchased wasn’t glamorous. It was a five bedroom terrace in Enmore that needed work, no hot water, tired interiors, and cosmetic wear and tear.

But it had the fundamentals. It was structurally sound, in a location with strong rental demand, and priced attractively. We could see the potential.

Rather than chasing prestige or perfection, we looked for:

Structural integrity
Solid rental prospects
Minor issues we could fix ourselves
Comparable sales to confirm value

We also took advantage of slower communication in those days. A small deposit temporarily secured the property while we finalised financing, a strategy that gave us the edge against competing buyers.

Don’t look for perfection. Look for the right balance of value, condition, and future upside.

Financing

We didn’t have the full deposit up front, so we had to get resourceful. A mix of personal savings, small loans from family, and an extension on a credit card helped us reach the required amount.

Once secured, we arranged financing through a building society and completed the purchase. From there, we renovated with help from family and rented the property out almost immediately.

The rent more than covered the mortgage. That positive cash flow gave us flexibility and breathing room and it taught us that well selected properties don’t have to be financial burdens.

Later, we refinanced the same property to fund travel, and when we eventually sold it, we used the capital gain as the deposit for the next purchase. That single decision had long-lasting ripple effects.

Legal, Accounting Tips and Final Thoughts

Even with an accounting background, going through the process taught me things that textbooks never could.

Use professionals to guide you:

A solicitor or conveyancer should review every contract.

If you’re buying with someone else, understand how ownership structures affect taxation and inheritance.

If the property is being rented, consider the implications of positive versus negative gearing.

Learn about refinancing, equity release, and how capital growth can be used to move forward.

Ask questions. Understand every number and every document. Don’t sign anything unless you’re confident you understand the risks, not just the rewards.

Lessons for First Time Buyers

• Understand your borrowing power before you fall in love with a property.

• Filter advice through the lens of your own goals and capacity.

• Prioritise value and fundamentals over appearance and hype.

• Move decisively when a good opportunity presents itself.

• Use the first property as a stepping stone, not a destination.

• Surround yourself with professionals who explain, not just advise.

• Invest time in learning the process; it pays off far beyond your first deal.

Buying your first property isn’t about being perfect. It’s about being prepared. Done right, it can be the foundation for every investment decision you make from there forward.