So, you’ve decided to jump into the great Australian dream of homeownership, but before you go diving headfirst into weekend inspections, let’s pause for a moment.

The Sydney property market is not for the faint-hearted—it’s more like an intricate chess game, where every move counts, and those who play it smart win the prize. First home buyers, this one’s for you.

With the help of reputable data and research portals, we’ve crunched the numbers and scoured the market trends to bring you the top three essential tips to navigate the property maze without breaking a sweat (or your budget).

By the end of this blog, you’ll feel more like a property-savvy expert and less like a deer in the real estate headlights. Without further ado, here are the three must-know tips for your first home buying journey in 2024…

Pro Tip Number 1 – Get a Reality Check on Your Budget

You’ve probably been eyeing mortgage calculators online, playing with the numbers, imagining what your repayments would look like at 5%, 6%, or even 7%. But here’s the kicker: buying a home involves way more than just a mortgage repayment.

According to CoreLogic’s September 2024 report, the median property price in Sydney has surged to beyond $1.3 million. That’s a spicy meatball! And this is just the start!

But before you faint into your smashed avo toast, take a deep breath. You don’t need to aim for the median price—especially as a first home buyer. What you do need, though, is a clear understanding of all the upfront and ongoing costs of owning a home.

Buying your first home without a budget is like trying to do your tax return with an abacus—not fun and potentially disastrous.

So, here’s a breakdown of what you’ll need to budget for:

– Stamp Duty: One of the most substantial upfront costs. However, the First Home Buyer Assistance Scheme offers exemptions or discounts, so make sure you check if you qualify.

– Lenders Mortgage Insurance (LMI): If your deposit is less than 20%, and you don’t qualify for reprieve, be prepared to pay this insurance, which can add thousands to your total bill.

– Conveyancing Costs: Whether you choose a conveyancer or conveyancing solicitor to help you with the legal stuff, you’ll be looking at an end to end cost of about $2500 for this service.

– Building and Pest Inspections and/or Strata Reports: Undertaking your due diligence on any property purchase means conducting inspections to ensure the property is worthwhile your bikkies. These reports will set you back for every property you seriously considering purchasing. The total cost here could be $1500. By the time you purchase.

– Ongoing Costs: Think council rates, home insurance, and maintenance. A CoreLogic study shows the average Sydney homeowner spends around $5,000 annually just on these basics. If you’re buying an apartment, villa or townhouse, you’ve got quarterly strata levies to consider too.

Head over to the NSW Government First Home Buyers Assistance Scheme website here https://www.nsw.gov.au/topics/housing-and-property/buying-or-selling-property/first-home-buyer to check your eligibility for stamp duty exemptions.

Pro Tip Number 2 – Location, Location… But Also Timing

There’s a reason everyone harps on about location. It’s not just about buying a home; it’s about buying into a lifestyle. But here’s something that’s often overlooked: timing can be just as important as location.

Let’s talk about Sydney, where median house prices in hot suburbs like Marrickville and Balmain are well over the million-dollar mark. But with a little clever strategy, you can still find a diamond in the rough in up-and-coming suburbs.

According to SQM Research, suburbs in Sydney’s outer west like Penrith and Campbelltown are experiencing price growth but remain under the million-dollar threshold (for now).

Here’s what you need to consider:

– Market Cycles: Property markets move in cycles. CoreLogic’s quarterly reports often show that buying during a market lull can mean less competition and lower prices. Track auction clearance rates and price growth trends in the areas you’re eyeing.

– Infrastructure Developments: If there’s one thing that can make a suburb boom, it’s new infrastructure. Keep an eye on areas where major projects are in the pipeline, like new train lines, schools, or retail precincts. These developments can quickly turn a sleepy suburb into a property hotspot.

Always remember that buying a home at the right time is like arriving at a party before the cake gets cut—you get the best slice without the crowd.

Check out CoreLogic’s Property Market Insights at https://www.corelogic.com.au/news-research for detailed suburb data and auction trends.

Pro Tip Number 3 – Negotiation is a Superpower

Welcome to one of the most nerve-wracking parts of buying a home: negotiation. Many first home buyers make the mistake of accepting the asking price or feeling intimidated by the process. Here’s the secret: negotiation is your superpower so don’t be afraid to flex it!

Here’s how to harness it:

– Research Comparable Sales: Use data from Domain.com.au and RealEstate.com.au to find out what similar homes in the area have sold for in the last three months. This gives you a benchmark and arms you with critical information before making an offer.

– Understand Market Conditions: If you’re in a buyer’s market (where supply exceeds demand), you have the upper hand. If it’s a seller’s market (where demand exceeds supply), you might need to sharpen your elbows, but don’t despair—knowing market conditions helps you play the game smarter.

– The Power of Patience: Don’t fall into the trap of FOMO or “fear of missing out.” According to CoreLogic, buyers often overpay when they rush into a purchase without negotiating properly. Take your time and be prepared to walk away if the numbers don’t add up.

Peruse SQM Research here https://www.sqmresearch.com.au for up-to-date property listings, vacancy rates, and price trends.

Negotiating for the purchase of your first home is like a game of chess – it’s all about strategy and making the right move at the right time. Checkmate, Vendors!

Enter Kitty & Miles—Your Secret Weapon in the Property Game

Feeling overwhelmed? Don’t worry—you don’t have to go it alone. Kitty & Miles, your expert Property Buyers Agent team, are here to make your first home-buying journey smooth and successful.

With years of experience in Sydney’s competitive market, Kitty & Miles provides insider knowledge, negotiation expertise, and tailored strategies to help you find the perfect property at the right price.

From identifying the best suburbs to guiding you through negotiations, Kitty & Miles is your partner every step of the way. Don’t just play the game—master it with us by your side.

Contact Kitty & Miles via email today at support@kittyandmiles.com.au to get started on your property journey, or browse our website for more resources and expert advice.

The Final Word – Know Before You Buy

Buying your first home is both an exciting and daunting experience, but with the right preparation, you can make it a super smooth ride.

From understanding your budget beyond the mortgage to mastering the art of negotiation, these three pro tips will set you on the right path. Remember, timing and location matter, but so does knowing when to walk away from a bad deal.

And if you’re feeling overwhelmed, there’s no shame in seeking expert help. A Buyers Advocate in Sydney like Kitty & Miles can be the difference between a stressful ordeal and a smart, smooth, and savvy Sydney purchase.

So, armed with data and your new-found confidence, you’re ready to step into the property market with your head held high. Good luck, future homeowners—your property journey starts now! Happy house hunting!