If you’ve ever dipped your toes into the Sydney property market, you’ve likely encountered a barrage of “advice” that ranges from outdated to downright wrong.

Advice providers have their own agenda, some altruistic yet misinformed, and some that are downright self-serving and dishonest. The real estate landscape is filled with myths that, if followed blindly, can sabotage your journey to homeownership.

As the lead Buyers Advocate at Kitty & Miles, I’ve seen it all – and I’m here to set the record straight. Brace yourself as I drop some truth bombs and obliterate the biggest real estate myths holding buyers back.

Whether you’re a first home buyer, or simply overwhelmed by Sydney’s sky-high prices, this is the no-BS guide you need.

MYTH #1: “You Must Save a 20% Deposit to Buy a Home”

The Truth: The 20% deposit rule is not a law – it’s a guideline. And in Sydney’s scorching property market, it’s not always realistic.

According to CoreLogic’s December 2024 report, the median house price in Sydney is circa $1.5 million. A 20% deposit on that is $300,000 – a figure most Australians struggle to reach.

The good news? Many lenders allow buyers to purchase with as little as a 5% deposit through schemes like the First Home Guarantee.

For first home buyers, government initiatives such as the First Home Super Saver Scheme or stamp duty concessions in NSW can also reduce the upfront financial burden. This often includes not having to pay lender’s mortgage insurance (LMI) too.

While on that topic, LMI may not sound ideal, but it’s a small price to pay for entering the market sooner.

At around $25,000, it makes more sense to add LMI to your loan amount and get into the property market NOW rather than slogging to save that 20% deposit and watching property prices surge in the meantime.

Waiting and saving more money often results in you paying $100,000+ more to buy your home – simply to save $25,000 on LMI. That math sure ain’t mathing!

Truth Bomb Takeaway: Waiting to save 20% could mean watching property prices rise beyond reach. Work with a super smart mortgage broker or buyer’s agent to assess what deposit strategy works best for you. It’s not one size fits all.

MYTH #2: “The Auction System in Sydney is Rigged Against Buyers”

The Truth: While auctions are high-pressure, they aren’t inherently unfair – you just need to know how to play the game.

Sydney’s clearance rate averaged circa 65% in 2024, according to Domain. It was at a similar level in 2023 also. 

While auctions can be nerve-wracking, they’re often the seller’s preferred method, not because it guarantees a higher price, but because it creates urgency.

To succeed at auction, preparation is everything. The level of research and preparation I have applied to my auction wins would astound many – but it is truthfully a large factor in my exemplary auction win rate.

Make sure you attend multiple auctions as a spectator to learn how they unfold – and the various outcomes that may eventuate on auction day. You want to have a solid arsenal within your knowledge kit.

Next, set yourself a hard budget limit. Consider if the property sold at auction for a particular price and you missed out. Would you kick yourself? If so, then this indicates what you’d wish to pay for the property.

Whilst you don’t want to overpay, you certainly don’t want to be so conservative that you don’t give yourself a realistic crack at winning. Saving $10,000 on the purchase price now may seem savvy, but if the property appreciates by $100,000 in the next 12 months then this math ain’t mathing!

And don’t be afraid to walk away. There’s no harm in walking away from an auction that makes you feel uncomfortable or anxious. Anxiety is not the headspace in which to make financial decisions.

Better yet, hire a Real Estate Buyers Advocate to bid on your behalf. Advocates bring a level of detachment and expertise that can stop you from overpaying in the heat of the moment. They are also well aware of real estate sales agent ploys and tactics, so can determine fact from fiction.

Truth Bomb Takeaway: Auctions aren’t “rigged” – but walking in unprepared is like bringing a spoon to a knife fight. Equip yourself with the right tools and expertise.

MYTH #3: “The Sales Price Guide is What the Property is Worth”

The Truth: The sales price guide (or auction guide) is simply a marketing item.

Too many times I’ve had clients say they missed out at auction – and watched the winning bidder pay well over the auction guide, so they therefore overpaid. This is an incorrect assumption.

The sales price guide, or auction guide, is merely a piece of marketing information the sales agent uses to attract potential buyers.

Sales agents that act unethically will grossly underquote this figure to encourage would-be buyer attendance at open inspections and drive artificial competition amongst potential buyers.

Legally, the actual value of a property must be within 10% either side of the sales price guide. In my experience, this guide price is well below the actual appraisal of the property – sometimes in the area of 40% below, but more generally 20-25% below.

Truth Bomb Takeaway: The “price guide” is often a red herring. Research comparable sold properties within the last 3 months to get a more realistic picture of the property’s true value in the current market.

MYTH #4: “You Should Always Buy the Worst House on the Best Street”

The Truth: This old adage has merit, but it’s not a one-size-fits-all solution.

Buying the worst house on the best street often works in established, blue-chip suburbs where demand consistently drives growth. However, in Sydney’s outer suburbs or emerging areas, this strategy might mean buying a property that requires more renovation than it’s worth.

For instance, a 2023 study by PRD revealed that areas like Parramatta and Liverpool are seeing rapid infrastructure development and value growth. Buying a well-maintained property in these suburbs might offer better returns than pouring cash into a fixer-upper in an already saturated market.

Truth Bomb Takeaway: The “worst house” strategy isn’t gospel. Focus on properties that balance potential growth with practicality.

MYTH #5: “You Don’t Need Professional Help to Buy a Property”

The Truth: Going it alone in Sydney’s property market is like trying to climb Everest without a guide – it’s technically possible, but not advisable.

The property industry is laden with complexities, from understanding price guides to accessing off-market options.

This is especially the case since the COVID-19 pandemic altered the Sydney real estate market as we know it. It is far more nuanced and complicated than it initially appears to the general public. You don’t know what you don’t know right?

A Sydney Buyers Advocate provides insider knowledge, negotiates fiercely on your behalf, and saves you from making costly mistakes.

According to a 2023 report by Finder, 40% of Australians regret their first home purchase, often due to lack of research or paying too much. Working with a Buyers Advocate like Kitty & Miles ensures you avoid these pitfalls and buy with confidence.

Too many Aussies think a DIY approach is fine when it comes to buying a property in Sydney. It’s not until you reflect down the track that you realise you made a poor buying choice, could’ve purchased cheaper, got duped in some way… 

Truth Bomb Takeaway: The smartest investment you can make is in professional guidance.

Why Busting These Myths Matters

Believing in these myths can keep you stuck in analysis paralysis, watching others snap up opportunities while you sit on the sidelines. In Sydney’s market, time is money, and the earlier you act, the better your chances of success.

At Kitty & Miles, we believe in empowering buyers with the truth – no fluff, no spin. As an award-winning academic researcher I see the market very differently to many and I use that vision to give you an edge.

Ready to separate fact from fiction and find your dream property in Sydney? At Kitty & Miles, we specialise in turning confusion into clarity.

Whether you’re a first home buyer or an experienced investor, we’ll help you navigate the market with confidence.

Reach out to our team today via email to: support@kittyandmiles.com.au and let’s bust some myths together. Your property journey starts here.