How to buy the right property as a first home buyer

30 Sept

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. Working with an experienced Ryde mortgage broker, Parramatta mortgage broker, or specialist in your area helps you make the right choice for your circumstances. This guide walks 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.

Quick overview: Property types include freestanding houses, townhouses, apartments, land for building, and investment properties. Each offers distinct advantages and considerations. Understanding these options helps you find the right first home in Gladesville, Baulkham Hills, Castle Hill, and throughout NSW.

Understanding what you need in a home

Key insight: Before you start 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 versus 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 the 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), and 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 freestanding house

Traditional choice: For many first home buyers, a detached house represents the ultimate dream of homeownership, offering a range of advantages that could make it the perfect fit for you.

Owning a detached home comes with many benefits:

Why choose a freestanding house?

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. Learn more about freestanding properties.

Things to consider before buying a freestanding house

Whilst 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 freestanding 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, or seek long-term capital growth potential.

Are townhouses a good first home?

Perfect balance: Townhouses offer the perfect balance between affordability, space, and location, combining the benefits of detached houses and apartments, making them an attractive choice for first-home buyers, young families, and investors.

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:

Why choose a townhouse?

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.
A sense of community with privacy: Townhouses offer a friendly neighbourhood feel whilst still allowing you to enjoy your personal space.
Outdoor living options: Many townhouses feature private courtyards, balconies, or small gardens.
Contemporary designs and finishes: New developments boast modern layouts, stylish interiors, and energy-efficient features.
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

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: Whilst 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.

Apartments benefits for first home buyers

Urban living: 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.

If you value location, affordability, and convenience, apartments could be the perfect fit. Here's how they can enhance your lifestyle:

Why choose an apartment?

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.
Resort-style amenities: Many apartment complexes include pools, gyms, rooftop terraces, and communal lounges.
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.
Lower utility costs: Smaller spaces and shared walls help reduce heating and cooling expenses.
Perfect for a lock-and-leave lifestyle: Ideal for frequent travellers or those with busy schedules.

For first-home buyers and investors, apartments offer an affordable way to enter the market whilst enjoying modern living in prime locations.

Things to consider before buying an apartment

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.
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.
Shared decision-making: Owners must collectively agree on building-wide maintenance and upgrades.
Variable capital growth: Apartments may appreciate differently than houses.

Understanding these factors ensures that an apartment aligns with your lifestyle and financial goals.

Ready to explore property types for your situation?

Let's discuss which property type best suits your needs and budget. Our mortgage brokers across Ryde, Baulkham Hills, Parramatta, and all NSW areas will help you find the perfect home.

Book consultation Call: 0426 002 202

Buying land and building your first home

Ultimate customisation: 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.

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:

Why build your own home?

Complete customisation: Design every detail of your home to match your preferences.
Modern, energy-efficient features: Incorporate the latest in sustainable design and smart home technology.
Potential cost savings: In certain areas, building can be more affordable than purchasing an established home.
Stamp duty savings: Pay stamp duty only on the land value, not the completed home.
Government incentives: Access first-home buyer grants and other financial incentives.
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 costly updates.

For first-home buyers and those looking to build in emerging growth areas, constructing a new home offers financial benefits and long-term security. Learn more about buying land for construction.

Things to consider before buying land to build

Construction timelines: The build process typically takes 6 to 12 months after land settlement.
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.
Decision-making load: Selecting every detail of your home can be overwhelming.
Temporary accommodation needs: You may need to rent whilst your home is being built.
Infrastructure readiness: New estates may take time to develop essential amenities.
Choosing the right builder: The success of your project depends on working with a reputable builder.

Understanding these factors ensures you are well-prepared for the building process and its unique challenges.

Building wealth through investment properties

Rentvesting strategy: For many first home buyers, purchasing an investment property whilst continuing to rent can be a smart strategy to enter the property market and build wealth.

For many first home buyers, purchasing an investment property whilst continuing to rent (known as "rentvesting") can be a smart strategy. This approach allows buyers to invest in high-growth areas whilst maintaining their preferred lifestyle in a location that may be otherwise unaffordable.

Why consider an investment property?

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 whilst 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 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.

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

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: 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.

Frequently asked questions

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, and 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. 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 provides 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, whilst apartments may be ideal for cash flow.

What are the main ongoing costs for different property types?

The ongoing costs of property ownership differ between property types. Houses typically have council rates ($1,500 to $3,000 annually), water rates ($800 to $1,200 annually), insurance ($1,000 to $3,000 annually), maintenance (approximately 1 per cent of property value annually), and utilities. Townhouses have strata fees ($1,500 to $4,000 annually), generally lower council rates, water rates often included in strata fees, building insurance typically covered by strata, some maintenance covered by strata and some individual responsibility, and utilities. Apartments have strata fees ($3,000 to $10,000+ annually depending on amenities), lower council rates than houses, water rates often included in strata fees, building insurance covered by strata, minimal individual maintenance costs, and typically lower utilities. Understanding these costs helps 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, or 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, or 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), and environmental factors (consider bushfire, flood, or other risks). Learn more about first-time land buyers and doing your due diligence is critical.

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, and contributions to the sinking fund for major repairs. Fees vary based on the size and age of the building, the number of amenities, and 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 are flexible for renovations and extensions, primarily subject to council approval, have potential to add significant value, and can be done in stages. Townhouses allow internal renovations usually, but external changes require strata approval, have limited scope for major structural changes, and some townhouses have restrictions. Apartments allow internal cosmetic renovations, structural changes are heavily restricted, and external modifications usually need strata approval. Always check with the council or strata management before planning renovations.

What's the difference between capital growth and rental yield?

Capital growth refers to the increase in property value over time, whilst rental yield is the annual rental income expressed as a percentage of the property's value. For example, a property that costs $500,000 and generates $25,000 in annual rental income has a 5 per cent rental yield. Different property types offer different balances of capital growth and yield. Houses in established areas typically offer strong capital growth but lower yields, whilst apartments in inner-city areas often provide higher yields but slower capital growth. Your investment strategy determines which balance suits your goals.

Get expert guidance today

Navigate the property selection process with confidence. Our experienced advisers will help you choose the right property type for your circumstances across Penrith, Gladesville, and all of NSW.

Book consultation Call: 0426 002 202

Related resources for first home buyers

Freestanding properties: complete guide – unmatched privacy, full land ownership, and freedom to design your home your way
Buying a strata title property: complete guide – understand ownership, levies, by-laws, and lifestyle benefits
Guide for first time land buyers – everything you need to know about land purchases and council regulations
Buying land for construction: complete guide – learn how to buy land and build your dream home
Why location, condition and vibes matter – a great home starts with the right neighbourhood and lifestyle support
Budgeting guide for first home buyers – create a realistic budget and understand your borrowing capacity

A young couple with their daughter and pet cat in their kitchen, enjoying their newly built family home. — **Your first home, your way.**

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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.

All information on this website is subject to change without notice.

Mojtaba Hasani