Why are First Home Buyers Struggling to Buy Their Homes? And How to Solve It
- Rayson L.
- Apr 3
- 5 min read
Updated: Jun 7
Buying your first home is an exciting milestone, but for many first-time buyers, the journey feels more like an uphill battle. From skyrocketing property prices to fierce competition and complex processes, it’s no surprise that many aspiring homeowners struggle to secure their dream home fast enough.
But don’t worry— our Melbourne buyers advocates will show you ways to turn the tide in your favor.
Let’s explore the challenges first home buyers face and how you can take control of your home-buying journey.
What Challenges Do First Home Buyers Face?
Rising Property Prices
In many parts of Australia, house prices have surged beyond expectations, making it harder for first-home buyers to save a deposit. With property values increasing faster than wages, many buyers feel like they’re constantly chasing a moving target.
Intense Competition
First-home buyers are often competing with seasoned investors and upsizers or downsizers who have larger budgets and greater negotiating power. With limited housing stock, properties in prime locations get snapped up quickly, leaving many first-home buyers missing out.
Complex and Overwhelming Process
From securing pre-approval and understanding government grants to navigating contracts and inspections, the process can be overwhelming. Without proper guidance, many buyers feel lost, delaying their progress or making costly mistakes. Best and Final Offer, Auction, Closed Auction, Boardroom Auction, Fixed Date Sale, Sell by Set Date, Private Treaty, Private Sale, etc, are some of the popular sales methods. While they may sound similar, there are enough nuances to set them apart, and each has its own way of navigating, so you avoid overpaying and have the right risk mitigation processes.
Choosing the Wrong Property
First-time buyers often hesitate because they fear making a bad financial decision. This hesitation can lead to missed opportunities as well-prepared buyers swoop in and secure properties with confidence.
The biggest problem first home buyers faced is:
Not Understanding the True Value of the Property
Our Buyers Advocates and Buyers Agents has seen it all. This is by far, the biggest challenge first home buyers face. They lack the market experience, exposure and due diligence know-how to ascertain the true value of the property they want to buy. They are also unable to assess what other buyers are willing to pay, leading to them either low-balling the properties and hurting their chances of ever having their offers presented to the vendor. Not understanding the value of the property, also leads them into fearing they might overpay for the property they like and thus, forces them to be conservative with the offer and thereby losing out to other buyers.
On the flip side, after first home buyers tried and failed repeatedly, anxiety and frustration kicks in, resulting in them making riskier decisions. When this happens, they would usually ended up with a property that they does not want, or ended up overpaying for the property they want.
How First-Home Buyers Can Improve Their Success
While the challenges are real, there are a few ways to fast-track your property purchase and make smarter decisions along the way. Here are some simple steps to turbo-charge your success in your success in buying your first home.
Get Your Finances in Order Early
Start by saving aggressively for your deposit and reducing unnecessary expenses. Speak to a mortgage broker to understand your borrowing capacity and secure pre-approval before house hunting. This puts you in a strong position to act quickly when the right property comes along. If you need to talk to a mortgage broker, our network of free mortgage advisors can help you understand your serviceability and apply for a pre-approval, so you can buy with certainty.
Take Advantage of Government Grants and Schemes
The First Home Owner Grant (FHOG), First Home Guarantee, and stamp duty concessions can make a significant difference to your budget. Research what’s available in your state and ensure you meet the eligibility criteria to maximize your savings.
Depending on the mechanics of the schemes some helps reduce your upfront mortgage deposit, some reduces the stamp duty payments, while other gives you an added boost in serviceability, in exchange for the government owning a portion of your property.
Expand Your Search Criteria
Many first-home buyers fixate on specific suburbs, limiting their options. Consider looking at surrounding areas that offer growth potential, better affordability, and strong rental demand if you ever decide to rent it out in the future.
Get Expert Support with a Buyer’s Advocate
A professional buyer’s advocate, like Concierge Buyers Advocates, can make the home-buying process faster, easier, and less stressful. They provide the necessary expert market insights, handle negotiations, and ensure you don’t overpay. Most importantly, they help you find and secure the right property before your competition does. While the buyers advocates fees might seem expensive, the value of the services you get in return are usually more than the fees you pay. They help you:
Understand the value of the property
Understand what your options are
Understand other locations you can consider
Understand the various sales methods and navigate them successfully for you
Negotiate and navigate the sales strategy to save tens of thousands of dollars
Buy up to 3 times faster and with less stress
Most importantly, by successfully understanding the above they can help you save tens of thousands off the property price. At Concierge Buyers Advocates, we usually help our our buyers save between $20k-50k per property.
Be Prepared and Act Decisively
We couldn't say it more... Do your homework. Once you’ve done sufficient research, you should be able to trust your preparations and be ready to act when the right opportunity presents itself. In the current Melbourne property market, prices are already starting to move upwards. Prices of properties in popular suburbs are already rising by between 1-3% per month. So, the longer you wait, the more prices will rise, making it even harder for you to enter the property market.
The Bright Side: Your Homeownership Dream is Within Reach
While the journey to buying your first home is often daunting, remember that every successful homeowner started somewhere. By being proactive, well-prepared, and seeking expert guidance, you can navigate the market with confidence and secure your dream home sooner than you think.
Many first home buyers have bought their first homes. So can you.
It is only a matter of time.
How Quickly Do You Want To Buy Your First Home?
It really is your choice, Do you want to buy fast and buy with confidence? Or would you want to learn the hard way and spend up to a year of more navigating the search, research and sales process? A Buyers Advocate can help you buy your first home confidently faster, helping you avoid unnecessary price rise. Prices are rising between 1-3% every month. The longer you wait, the more you will have to pay.
At Concierge Buyers Advocates, we’re dedicated to helping first-home buyers like you achieve homeownership faster and with less stress. Whether it’s finding the right property, negotiating a great deal, or guiding you through the process, we’re here to make your dream a reality. Our strict qualification process has ensured we only offer our services to first home buyers who can buy and we've been 100% successful in helping them.
Yes, all of our first home buyer client have bought their dream home. No one else in the industry can lay claim to this.
Kommentare