How to choose the right property as a first home buyer
Are you ready to buy your first home but unsure which property type suits you best? With so many options available, it can feel overwhelming. At Buyvest, we understand that buying your first home is a huge milestone, and we're here to help you make the right choice. This guide will walk you through different property types, their benefits, and key factors to consider, so you can find a home that fits your lifestyle, needs, and financial goals.
Understanding what you need in a home
Before exploring property types, it's important to clarify your priorities. Your home should support your lifestyle, budget, and long-term plans.
How your lifestyle affects your choice
Your daily routine plays a big role in deciding the best property for you:
Commute and convenience: How close do you need to be to work, public transport, or amenities?
Privacy vs. community: Do you prefer a quiet, private home or a more social environment?
Maintenance commitment: How much time and effort can you put into home upkeep?
Family and future plans: Are you planning to start a family or need extra space for growth?
Work-from-home needs: Do you need a home office or flexible living space?
Choosing the right property type ensures your home supports your lifestyle and long-term happiness.
Setting a realistic budget
Your budget affects not just what you can afford now, but also your future financial stability. Consider:
Purchase price: Property types vary in cost, even within the same area.
Ongoing expenses: Council rates, strata fees, insurance, and maintenance add up.
Resale potential: Some property types appreciate faster than others.
Renovation opportunities: Will you need to upgrade the property in the future?
At Buyvest, we help first home buyers secure the right financing, so you can confidently invest in a home that aligns with your budget.
Location matters
The location of your home plays a crucial role in property type options:
City living: Apartments and townhouses are common in urban areas.
Suburban space: More detached houses with yards and family-friendly amenities.
Regional affordability: Larger blocks with lower prices and relaxed lifestyles.
Growth areas: New developments offering house-and-land packages.
Established neighbourhoods: Character homes with potential for renovations.
Knowing your preferred location helps narrow down the best property options for you.
The benefits of owning a free-standing house
For many first home buyers, a detached house represents the ultimate dream of homeownership. This traditional choice offers a range of advantages that could make it the perfect fit for you.
Why choose a free-standing house?
Owning a detached home comes with many benefits:
Full ownership: You own both the land and the home.
More privacy: No shared walls mean less noise and more personal space.
Spacious living: Larger indoor and outdoor areas for families, pets, or hobbies.
Freedom to customise: Renovate, extend, or modify as you please.
Outdoor space: Private yards for kids, pets, gardening, or entertaining.
Parking convenience: Garages, carports, and off-street parking options.
No strata restrictions: No rules limiting pets, renovations, or property use.
These features make detached homes ideal for families, those who value privacy, and buyers looking for long-term investment potential.
Things to consider before buying a free-standing house
While single-family homes offer great benefits, they also come with responsibilities:
Higher upfront cost: Detached homes are often more expensive than apartments or townhouses.
Maintenance responsibilities: You’re in charge of all upkeep, from gardens to structural repairs.
More ongoing expenses: Council rates, insurance, and utilities may be higher.
Time commitment: Upkeep requires effort, especially for larger properties.
Location trade-offs: Affording a house may mean moving further from the city centre.
At Buyvest, we help you weigh these factors to ensure your home is the right investment for your financial future.
Is a free-standing property right for you?
A single-family home is an excellent choice if you:
Want a spacious property with room to grow.
Value privacy and independence.
Plan to start or expand a family.
Have pets or hobbies that require outdoor space.
Prefer full control over renovations and modifications.
Seek long-term capital growth potential.
Are townhouses a good first home?
Townhouses offer the perfect balance between affordability, space, and location. They combine the benefits of detached houses and apartments, making them an attractive choice for first-home buyers, young families, and investors looking for value in prime locations.
Why choose a townhouse?
If you're looking for a property that offers both privacy and convenience, townhouses are an excellent option. Here’s how they can enhance your lifestyle:
Affordable entry into the market: Townhouses are generally more cost-effective than detached houses in the same area, helping buyers secure a home in desirable suburbs.
Low-maintenance living: With smaller outdoor areas and shared maintenance responsibilities, townhouses let you enjoy homeownership without the burden of excessive upkeep.
Spacious and practical layouts: Multi-level designs provide a natural separation between living and sleeping areas, giving you the best of both worlds.
A sense of community with privacy: Townhouses offer a friendly neighbourhood feel while still allowing you to enjoy your personal space.
Outdoor living options: Many townhouses feature private courtyards, balconies, or small gardens, giving you outdoor space without the hassle of large yards.
Contemporary designs and finishes: New developments boast modern layouts, stylish interiors, and energy-efficient features to suit today’s lifestyle.
Prime locations: Townhouses are commonly found in sought-after inner and middle-ring suburbs, providing excellent access to amenities, schools, and public transport.
For first-home buyers or investors, townhouses provide the ideal mix of affordability, convenience, and growth potential.
Things to keep in mind when buying a townhouse
While townhouses offer numerous benefits, it’s important to consider:
Shared walls: Living in close proximity to neighbours means some noise transfer is possible.
Strata fees and regulations: Most townhouses are part of a strata scheme, which comes with body corporate fees and certain restrictions on renovations, pet ownership, and shared spaces.
Resale factors: New townhouse developments may create competition when it’s time to sell.
Smaller outdoor areas: While townhouses include outdoor spaces, they are more compact compared to standalone houses.
Parking considerations: Some townhouses have single garages or limited visitor parking.
Multi-level living: Stairs can be a challenge for those with mobility concerns.
Understanding these factors helps ensure that a townhouse aligns with your long-term goals and lifestyle.
Who should consider a townhouse?
Townhouses are a great choice for:
First-home buyers who want a balance between affordability and space.
Small families or couples looking for a modern home with room to grow.
Those who want an outdoor area without the upkeep of a large backyard.
Buyers who prioritise location and lifestyle over a standalone house.
People seeking a low-maintenance property with modern design and amenities.
Apartments benefits for first home buyers
Apartments, also known as units or flats, offer an affordable and convenient entry into the property market. Ideal for first-home buyers, investors, and busy professionals, apartments provide a modern lifestyle with minimal upkeep.
Why choose an apartment?
If you value location, affordability, and convenience, apartments could be the perfect fit. Here’s how they can enhance your lifestyle:
Affordable homeownership: Apartments are typically the most budget-friendly option in prime locations, making them ideal for first-home buyers.
Low-maintenance living: No gardens to manage, and building upkeep is handled by the strata, so you can enjoy a hassle-free lifestyle.
Resort-style amenities: Many apartment complexes include pools, gyms, rooftop terraces, and communal lounges, offering luxury at a fraction of the cost.
Enhanced security: Secure entry, intercom systems, and concierge services provide peace of mind.
Prime locations: Apartments are more readily available in sought-after areas, including inner-city and coastal suburbs, giving you access to top amenities and transport.
Lower utility costs: Smaller spaces and shared walls help reduce heating and cooling expenses, saving you money over time.
Perfect for a lock-and-leave lifestyle: Ideal for frequent travellers or those with busy schedules who want a secure, low-maintenance home.
For first-home buyers and investors, apartments offer an affordable way to enter the market while enjoying modern living in prime locations.
Things to consider before buying an apartment
While apartments come with many benefits, it’s important to be aware of:
Strata fees and regulations: Ongoing body corporate fees contribute to building upkeep, but costs can be high in complexes with premium amenities.
Space and storage limitations: Apartments generally have less room than townhouses or houses, which may require creative storage solutions.
Privacy concerns: Close proximity to neighbours means noise transfer can be an issue.
Restrictions on renovations and pets: Strata bylaws may limit what changes you can make or whether pets are allowed.
Parking availability: Some apartments offer limited or no parking, or require separate parking purchases.
Shared decision-making: Owners must collectively agree on building-wide maintenance and upgrades.
Variable capital growth: Apartments may appreciate differently than houses, making it important to research long-term investment potential.
Understanding these factors ensures that an apartment aligns with your lifestyle and financial goals.
Who should consider an apartment?
Apartments are a great choice for:
Singles and couples without children looking for an affordable, low-maintenance home.
First-home buyers who prioritise location and lifestyle over space.
Professionals with busy schedules who want a convenient living arrangement.
Buyers looking for premium amenities like pools, gyms, and security features without the high costs of a standalone house.
Frequent travelers who need a secure lock-and-leave property.
Investors seeking strong rental yields in high-demand areas.
Those preferring single-level living for accessibility and ease of movement.
Buying land and building your first home
Purchasing land and building a home offers the ultimate opportunity for customisation, allowing you to create a home that perfectly suits your lifestyle and future needs. This option is ideal for buyers who want a modern, energy-efficient home in a location of their choice.
Why build your own home?
Building from the ground up provides several unique benefits that make it an attractive option for first-home buyers and families looking for a personalised living space:
Complete customisation: Design every detail of your home to match your preferences, from layout to finishes.
Modern, energy-efficient features: Incorporate the latest in sustainable design, smart home technology, and efficient materials to reduce long-term costs.
Potential cost savings: In certain areas, building can be more affordable than purchasing an established home, providing better value for money.
Stamp duty savings: Pay stamp duty only on the land value, not the completed home, reducing upfront costs.
Government incentives: Access first-home buyer grants and other financial incentives available for new construction.
Builder’s warranty protection: Enjoy peace of mind with warranties covering structural elements and defects.
No renovation headaches: Move into a brand-new home without the need for costly updates or repairs.
For first-home buyers and those looking to build in emerging growth areas, constructing a new home offers financial benefits and long-term security.
Things to consider before buying land to build
While building offers flexibility and financial advantages, there are important factors to keep in mind:
Construction timelines: The build process typically takes 6-12 months after land settlement, requiring patience and planning.
Budget management: Unexpected expenses and potential cost overruns are common in construction projects.
Financing differences: Construction loans have unique requirements compared to standard home loans, and payments are made in stages.
Decision-making load: Selecting every detail of your home, from floor plans to finishes, can be overwhelming.
Temporary accommodation needs: You may need to rent or arrange alternative housing while your home is being built.
Infrastructure readiness: New estates may take time to develop essential amenities like schools, shopping centres, and transport links.
Choosing the right builder: The success of your project depends on working with a reputable and reliable builder.
Understanding these factors ensures you are well-prepared for the building process and its unique challenges.
Who should consider building a house?
Building a home is a great option for:
Buyers with specific design needs that are difficult to find in existing homes.
Those who have flexibility in their timeline and can accommodate construction delays.
People who enjoy personalising their living space and making detailed design decisions.
First-home buyers looking to take advantage of government grants and incentives.
Buyers investing in new estates or high-growth suburbs with strong future potential.
Those wanting the latest in home technology, sustainability, and energy efficiency.
Buyers who are prepared to navigate the complexities of land purchase and construction loans.
Start small, think Big with land Banking
Land banking is a powerful wealth-building strategy that involves purchasing undeveloped land and holding it for future appreciation or development. This approach is ideal for investors looking to secure land in high-growth areas before values rise.
Why invest in land banking?
For those with a long-term vision, land banking offers multiple advantages that make it a compelling investment strategy:
Lower entry costs: Undeveloped land is generally more affordable than established properties, making it an accessible investment option.
Potential for significant capital growth: As surrounding infrastructure and development progress, land values can increase substantially over time.
Minimal ongoing maintenance: Compared to developed properties, vacant land has lower holding costs with no tenant-related expenses.
Flexibility for future opportunities: Whether you choose to sell, develop, or build, land banking gives you multiple options for maximising returns.
Less competition: Compared to established properties, vacant land often faces fewer bidding wars, giving investors an advantage.
Development potential: Over time, zoning changes or urban expansion may allow for profitable subdivisions or commercial opportunities.
Portfolio diversification: Land ownership adds a unique asset class to an investment portfolio, balancing risk and potential reward.
For those willing to take a long-term approach, land banking can be a lucrative way to build wealth and secure future opportunities.
Important factors to consider when land banking
While land banking presents attractive benefits, there are crucial factors to evaluate before investing:
No immediate rental income: Unlike rental properties, vacant land does not generate cash flow while being held.
Market unpredictability: The speed of value appreciation depends on infrastructure development, economic conditions, and zoning changes.
Ongoing holding costs: Even without tenants, landowners must cover council rates, land tax, and basic maintenance.
Regulatory and zoning risks: Changes in government planning regulations can impact development opportunities and future profitability.
Liquidity challenges: Selling undeveloped land can take time, especially if market conditions are not favourable.
Infrastructure timelines: While an area may be earmarked for growth, the pace of development can be slower than expected.
Careful research and strategic planning are essential to ensure land banking aligns with your financial goals and risk tolerance.
Who should consider land banking?
Land banking is best suited for investors who:
Already own a primary residence or have secure housing arrangements.
Have a long-term investment mindset (10+ years) and patience for gradual appreciation.
Possess strong knowledge of property market trends and future growth areas.
Have financial stability to hold a non-income-producing asset without pressure to sell.
Want to secure land in emerging suburbs before prices surge.
Can afford to wait for the right opportunity to develop or sell at peak value.
Are comfortable managing an asset that requires minimal upkeep but demands strategic foresight.
Building wealth through investment properties
For many first home buyers, purchasing an investment property while continuing to rent- known as Rentvesting - can be a smart strategy to enter the property market. This approach allows buyers to invest in high-growth areas while maintaining their preferred lifestyle in a location that may be otherwise unaffordable.
Why consider an investment property?
Choosing an investment property as your first purchase offers several financial advantages:
Generate rental income: Tenants contribute to your mortgage, helping you build equity over time.
Take advantage of tax benefits: Potential tax deductions, including negative gearing and depreciation, can reduce overall expenses.
Maintain lifestyle flexibility: Live where you want while investing in more affordable or high-growth areas.
Build long-term wealth: Start growing a property portfolio early to benefit from future capital growth.
Enter the market sooner: Invest in a location you can afford rather than waiting to save for a home in an expensive area.
Foundation for future investments: Your first investment property can be a stepping stone to additional properties.
Let tenants help pay off your loan: Rental income assists in covering mortgage repayments, reducing financial strain.
For first home buyers focused on wealth creation rather than immediate homeownership, investing in property can be a strategic move.
Key considerations for investment properties
While investment properties offer compelling benefits, there are important factors to keep in mind:
No first home buyer grants: Most government incentives require you to live in the property.
Property management responsibilities: You’ll need to either self-manage tenants or hire a property manager.
Potential vacancy risks: Periods without tenants mean covering mortgage repayments yourself.
Higher loan requirements: Investment loans often come with stricter lending criteria and higher interest rates.
Ongoing maintenance: Landlords must budget for repairs and upkeep.
Capital gains tax (CGT): When selling an investment property, CGT may apply depending on the holding period.
Objective decision-making: Unlike buying a home to live in, investment decisions should be based on financial returns rather than personal preferences.
Understanding these factors will help determine if an investment property aligns with your financial goals and risk tolerance.
Who should consider an investment property?
Investing in property is particularly suitable for:
Those who prefer to rent in areas they can’t afford to buy.
First home buyers prioritising wealth-building over homeownership.
People who may need to relocate for work or lifestyle reasons.
Buyers comfortable with the responsibilities of being a landlord.
Investors focused on long-term capital growth and passive income.
Those willing to forgo first home buyer benefits in exchange for investment advantages.
Frequently asked questions about property types
How do I know which property type is right for me?
Choosing the right property depends on several factors, including your budget, space requirements, and lifestyle preferences. Here are a few things to consider:
Your borrowing capacity and budget
Space needs and willingness to handle maintenance
Your long-term goals, like family growth or career changes
Location preferences and priorities Creating a list of must-have features and nice-to-haves can help guide your decision. Many first home buyers balance location with space to find the ideal property for their needs.
Which property type offers the best investment potential?
Investment potential varies with property type. Here's a breakdown:
Houses: Tend to offer stronger long-term capital growth but lower rental yields.
Apartments: Provide better rental yields but may have slower capital growth.
Townhouses: Often offer a balance between yield and growth.
Land: Can appreciate significantly in developing areas, but no rental income.
New builds: Depreciate initially but provide tax advantages through depreciation. The best investment depends on your financial goals. For long-term growth, properties with land in high-demand areas tend to perform best, while apartments may be ideal for cash flow.
What are the main ongoing costs for different property types?
The ongoing costs of property ownership can differ between property types:
Houses:
Council rates: $1,500 - $3,000 annually
Water rates: $800 - $1,200 annually
Insurance: $1,000 - $3,000 annually
Maintenance: Approx. 1% of property value annually
Utilities: Electricity, gas, internet
Townhouses:
Strata fees: $1,500 - $4,000 annually
Council rates: Generally lower than houses
Water rates: Often included in strata fees
Insurance: Building insurance typically covered by strata
Maintenance: Some covered by strata, some individual responsibility
Utilities: Electricity, gas, internet
Apartments:
Strata fees: $3,000 - $10,000+ annually (depending on amenities)
Council rates: Lower than houses
Water rates: Often included in strata fees
Insurance: Building insurance covered by strata
Maintenance: Minimal individual costs
Utilities: Typically lower than houses
Vacant Land:
Council rates
Land tax (if applicable)
Basic maintenance: Clearing, mowing
Understanding these costs will help you plan your property budget effectively.
Are apartments a good first home purchase?
Apartments can be an excellent first home choice, especially if:
Location is your top priority
You’re working with a limited budget
You prefer low-maintenance living
You value amenities like pools, gyms, or security features
You’re uncertain about your long-term housing needs
However, apartments might not be ideal if:
You need more space for family or hobbies
You're uncomfortable with strata living and shared decision-making
You have pets that need outdoor space
You want to maximise capital growth potential
You plan extensive renovations
For many, apartments offer a great stepping stone to future property types.
What should I look for when buying land to build on?
When purchasing land for building, consider:
Orientation: North-facing blocks maximise natural light.
Slope: Level land is easier and cheaper to build on.
Soil quality: Affects foundation costs and requirements.
Services: Ensure water, electricity, gas, and internet are available.
Easements or restrictions: Check for any building limitations.
Block dimensions: Make sure it suits your house design.
Covenants: Some estates have strict design or build requirements.
Surrounding development: Know what’s planned for neighbouring properties.
Environmental factors: Consider bushfire, flood, or other risks.
Doing your due diligence is critical when purchasing land, and it’s advisable to consult professionals, such as conveyancers and building experts.
How do strata fees work for apartments and townhouses?
Strata fees (also called body corporate fees) cover:
Building insurance
Maintenance of common areas
Structural repairs
Management of shared facilities
Administrative costs
Contributions to the sinking fund for major repairs
Fees vary based on:
The size and age of the building
The number of amenities
The number of units sharing the costs
Before purchasing, review strata records to understand the fee history, planned increases, and future expenses.
Can I renovate or extend different property types?
Renovation options vary by property type:
Houses:
Flexible for renovations and extensions.
Primarily subject to council approval.
Potential to add significant value.
Can be done in stages.
Townhouses:
Internal renovations are usually possible, but external changes require strata approval.
Limited scope for major structural changes.
Some townhouses have restrictions.
Apartments:
Internal cosmetic renovations are allowed.
Structural changes are heavily restricted.
External modifications usually need strata approval.
Always check with the council or strata management before planning renovations.
What are the pros and cons of buying in a new development?
Advantages:
Modern designs and features.
Energy-efficient construction.
New home warranties.
Lower maintenance in the first few years.
Stamp duty savings or incentives.
New amenities.
Considerations:
Smaller land sizes.
Possible construction delays.
Infrastructure may be still developing.
New communities take time to establish.
May face competition from similar properties when selling.
It's important to research the developer’s reputation and review their completed projects before committing.
How important is the land component in property value?
Land value is a key driver of property appreciation because:
Land is finite and can’t be increased in supply.
Buildings depreciate over time, requiring maintenance.
Land in well-located areas typically appreciates in value as demand grows.
Zoning changes can significantly affect land values.
While land size is important, location plays a crucial role in property value. Smaller blocks in prime locations often outperform larger blocks in less desirable areas, offering greater long-term growth potential.
Why Choose Buyvest?
At Buyvest, we help you make smart choices based on your goals, budget and future plans. Whether you're buying your first home or starting your property portfolio, we're here to guide you through every step.
We take the time to understand your situation and explain your options in clear terms - no jargon, no pressure. With access to over 35 lenders, we’ll help you find a loan and property strategy that suits you now and gives you room to grow later.
Your first home can be a smart starting point. Many buyers begin with something smaller, then upgrade or invest as their lifestyle and finances grow. What matters most is having the right plan from the start and that’s where we can help.
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Your first home, your way.
Explore the property types that fit your life and future.
Important stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd ABN 91 684 841 496, Australia Credit Licence No. 567392 and is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
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