It's often said that if you want to buy your first home, you’ll need to give up smashed avocado and Sunday brunches. But is that really true?
That stats* say first home buyers remain active in the WA market despite rising house prices and interest rates, with ABS data revealing they made up 35 per cent of all new loans to owner occupiers in 2023.
But let’s not just talk about the numbers, REIWA also spoke to Tiffany (26) and Gabriel (29), who purchased their first home in Nollamara in April. They shared how they did it, and spoiler alert: they didn’t have to give up avocado on sourdough toast or get a loan from the bank of Mum and Dad!
What made you decide it was time to buy your first home?
Gabriel: We moved to WA in 2021 and rented for over three years. We’d been watching prices rise over the past 12 months and decided it was better to have our foot on the property ladder than waiting for the possibility of prices declining.
Tiffany: That, and the fact we wanted to adopt our very own furry friend, and we adopted one this week!
What were your first steps?
Tiffany: We met with a mortgage broker, who gave us a good understanding of our borrowing capacity, helped us prepare our documentation and advised us on the government grants available. They also helped us compare lenders and loans to get the best fit for our situation.
How long did you save for your deposit?
Gabriel: We started saving for a deposit 18 months ago. We really focused on saving, being careful with our spending and cutting back where necessary. We certainly weren’t living on two-minute noodles or baked beans on toast, but we made smart financial decisions.
Tiffany: I also took advantage of the First Home Super Saver Scheme, which allowed me to salary sacrifice part of my weekly pay into superannuation to build up over $17,000 towards our deposit.
Did you have to change your plans?
Tiffany: We did have to make some adjustments.
We had an ideal suburb in mind, but that was out of our budget. So we widened our search radius to include nearby suburbs and increased our original budget.
Gabriel: We also compromised on the size of the property, opting for a villa instead of a house.
Did you take advantage of any grants or concessions?
Gabriel: Our home was priced under the $530,000 maximum threshold for the First Home Owner Rate of Duty (FHOR), so we saved over $2,000.
What advice would you give other first home buyers starting their search?
Tiffany: Start with a clear savings plan and stick to it. Understand your finances and cut back where you can without feeling deprived.
Gabriel: Be patient and persistent. The market can be overwhelming, so be prepared to compromise but know your non-negotiables. Take advantage of available grants and concessions.
Tiffany: It can be a stressful time especially in the current market but enjoy the journey - it’s a significant milestone!
*First home buyer fast facts
- First home buyers made up 34.8 per cent of all loans to owner occupiers in 2023. This level has remained relatively stable since 2012, except during the 2020 COVID building incentive period.
- Investors made up 4.9 per cent of all first home buyer new loans in 2023, a slight increase from 4.6 per cent in 2022.
- The average loan size for WA first home buyers was $521,863 in March 2024, up 9.6 per cent from $476,224 in March 2023.
- Three states have a lower average FHB loan size than WA: South Australia ($519,165), Tasmania ($461,961) and the Northern Territory ($461,538).
- The median age of WA first home buyers has risen to 34 in 2024 from 31 prior to the pandemic.
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