Longstanding Gold Coast and Canberra developer <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> is continuing to roll on with its Glitter Strip apartment pipeline, seeking to return to Mermaid Beach with a new 68-apartment development.

Morris, founded by Barry Morris in 1978 and one of the Gold Coast’s most prolific apartment developers over the past two decades, has filed plans for a 12-storey mixed-use building at <a href="https://www.apartments.com.au/new-apartments/36-seabeach-avenue-mermaid-beach-qld-4218">34-36 Seabeach Avenue</a>, on the prized eastern side of the Gold Coast Highway.

The 1,227 sqm site occupies a prominent corner position at Seabeach Avenue and the Gold Coast Highway, opposite the Mermaid Plaza retail and office precinct and around 140 metres walking distance from the future Mermaid Beach South light rail station.

<a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a> has designed the project, which will comprise 68 apartments across a mix of 48 two-bedroom and 20 three-bedroom residences.

The building will rise 12 storeys, reaching a maximum height of 36 metres, with the apartments accounting for a total of 156 bedrooms. The development application also seeks approval for short-term accommodation across the 68 apartments, while two office tenancies are proposed at ground level.

The plans show 108 car spaces across the development, with parking accommodated at ground level and within a three-level basement accessed from Seabeach Avenue.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="c2175c99-12fd-4a3c-9be1-89bbf258a90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.41%E2%80%AFPM_0.png?VersionId=iNLzWcE6gaAE76rafhEXfHve.4g4Se0p" />

Resident amenity will be concentrated on level two, where Fraser &amp; Partners has designed a recreation deck with a swimming pool, 90 sqm pool terrace, outdoor barbecue area and gym.

The broader communal offering will also incorporate landscaped spaces, with the planning documents noting the amenity has been designed to provide areas for recreation, social interaction and outdoor living.

The proposal would continue the transformation of the Gold Coast Highway corridor through Mermaid Beach ahead of the arrival of the light rail.

The site is zoned Neighbourhood Centre and sits within the Mermaid Beach/Broadbeach Light Rail Corridor neighbourhood plan. While the prescribed building height is 24 metres, the site is identified within an Urban Neighbourhood context providing for a 50 per cent height uplift to 36 metres.

Planning documents describe the stretch of the Gold Coast Highway between Broadbeach and Nobby Beach as increasingly characterised by medium and high-rise development, with the proposed Morris tower joining projects including Ventura, The Alfred, Oceans and Otto.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="911f193f-e381-4a55-be08-58be87fcf978" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.48%E2%80%AFPM.png?VersionId=oxVvLJaY.SOXEdXrIcogfyEXDfvCmmpM" />

The development would mark Morris Property Group's latest investment in Mermaid Beach, where it has already delivered two apartment projects.

Otto, at 1 Bondi Avenue on the western side of the Gold Coast Highway, comprises 70 apartments across nine storeys. The project was completed in 2019 and includes a residents' gym, recreation deck and swimming pool.

Morris also developed Oceans at 46 Ocean Street, a nine-storey, 70-apartment build-to-rent development completed in 2019. Oceans was the group's first build-to-rent project and incorporates commercial space at ground level.

The two existing Morris projects sit further north along the same Gold Coast Highway corridor as the proposed Seabeach Avenue development. Fraser &amp; Partners' planning analysis specifically identifies both Otto and Oceans among the established built-form precedents surrounding the site.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="14925119-7b71-4812-8149-340317512c7c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%203.00.15%E2%80%AFPM.png?VersionId=aEJqYuw_nTCjcin17BSD0piB1EFotTlj" />

Mermaid Beach represents only part of Morris' considerable Gold Coast footprint.

The family-owned developer has been particularly active in neighbouring Broadbeach, delivering projects including Sierra Grand, Eclipse, Synergy, Qube, Koko, Opus and Malo, while its current pipeline includes Maison and the two-tower Crest development.

Further south, Morris has also developed a string of projects in Burleigh Heads, including Element, Boardwalk and Sandbar, while Essentia expanded its footprint north into Surfers Paradise.

The Seabeach Avenue application has been lodged by PMM Broadbeach Pty Ltd and seeks a development permit for a Material Change of Use for multiple dwellings, short-term accommodation and office uses. Zone Planning Group prepared the planning application, with Fraser &amp; Partners commissioned as architect.

The project comes as the developer continues to expand its Gold Coast pipeline while retaining a significant presence in Canberra. Morris now has more than $2.5 billion of development in its national pipeline and has delivered more than 7,000 homes during its near five-decade history

Joel Robinson

First look: Morris Property Group returns to Mermaid Beach with new Seabeach Avenue apartment development

<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.

55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.

The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.

[smartcode_project:default project_id=152579 project_image_fid=376250]

55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.

Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.

The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.

[smartcode_project:default project_id=152579 project_image_fid=376253]

At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.

The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.

A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.

Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.

&nbsp;

&nbsp;

The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.

Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.

“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.

55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.

Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.

[smartcode_project:default project_id=152579 project_image_fid=376252]

Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.

The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.

55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.

[smartcode_project_cta:default project_id=152579]

Fortis continues eastern suburbs push with 55 William launch

UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.

Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.

The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.

It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.

Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.

A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.

The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.

It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.

Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.

“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.

“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”

Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.

“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”

The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.

Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.

The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.

Arada plots $2 billion Broadbeach towers in major Queensland move

Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.

Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.

Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.

“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.

“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”

It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.

[smartcode_project:default project_id=135149 project_image_fid=377495]

For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.

Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.

Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.

[smartcode_project:default project_id=135149 project_image_fid=377494]

“These buyers still want their home to feel generous,” Porter says.

“They may want less maintenance, but they are not looking for less life.”

The challenge for the broader housing market is providing enough of the right stock to encourage that move.

While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.

Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.

“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.

“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”

It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.

<h2>Lillian targets the next stage of apartment buyer</h2>

It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.

Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.

The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.

[smartcode_project:default project_id=135149 project_image_fid=377688]

McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.

For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.

“People should be able to change the type of home they live in without having to change their entire life,” he says.

“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”

[smartcode_project:default project_id=135149 project_image_fid=377687]

Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.

Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.

Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.

[smartcode_project_cta:default project_id=135149]

From downsizing to right-sizing: What Sydney buyers want from their next home

Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

The Maybelle brings 27-storey parkside tower to market near North Strathfield

First Home Buyers

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As a first home buyer, it's sometimes hard to figure out how you compare to others in the same position.

Are you spending way more than you should and overcommitting yourself? Or are you trying to scrimp and eyeing a property that most buyers, first timer or otherwise, wouldn't touch?

If you're planning on laying money down for your first purchase, you have to be realistic about how much you can spend. You may be able to save up for a deposit on a $650,000 house by eating baked beans every night for a year, but that's not a sustainable way to live.

Once your mortgage payment obligations start, they don't stop - not if you decide to get married, or have a baby, or get sick. So be honest with yourself about what you can afford.

[smartcode_project:default project_id=29048]

The Australian Bureau of Statistics (ABS) gathers data on different segments of the market, including first home buyers. According to the ABS, the average loan size for a first time buyer in July this year was $307,400.

Adding an assumed 10% deposit, that brings the typical first home buyer price to an estimated $338,140 (though remember, those <a href="/expert-insights/buying/what-does-a-home-really-cost-for-a-first-time-buyer">aren't the only costs</a> associated with buying your first home). While the ABS figures can allow you to make a rough guess at what others are spending, remember - there is no one particular loan size, l<a href="/expert-insights/investing/what-level-of-gearing-should-i-accept-for-my-first-investment-ask-margaret">oan to value ratio</a>, or finance scheme that fits everyone. 

It's important to note that our $338,140 is a national average, and prices vary from city to city. For a more specific breakdown, see what Property Observer's expert contributors <a href="/expert-insights/buying/exclusive-first-home-buyer-picks-from-the-experts">picked around Australia</a>. 

[smartcode_project:default project_id=8082]

So what exactly will $338,140 buy you?

In Melbourne, that might get you a one bedroom apartment like <a href="https://www.realestate.com.au/property-apartment-vic-flemington-117540416" target="_blank">this one</a>, located three kilometres from the CBD in Flemington. The lowrise apartment pictured below sold for $340,500 in August.

<img alt="" src="/images/2014/09/19/1.jpg">

Showing just how much things change a mere 3,400 kilometres away, in Perth's Balga you can pick up a <a href="https://www.realestate.com.au/property-house-wa-balga-116930007" target="_blank">three bedroom attached house</a> for $340,000.

 <img alt="" src="/images/2014/09/19/2.jpg">

If the average first home buyer across Australia is paying around $340,000 for home, does that mean you should too?

Not necessarily. Prices, household incomes and living costs vary all across the country - what might work for your friend in Balga may not be such a wise decision in Sydney. You might be better off waiting until you can afford a property that offers good capital growth.

Perhaps you're wondering what the first home buyer market was like five years ago (or how much easier your older brother had it).

In July 2009, the average loan size to a first home buyer was $269,100 - meaning the average first home buyer commitment size has increased by 14% over the past five years. According to the ABS, the proportion of first home buyers in the market was higher then, with 25.7% of all homes financed in July 2009 belonging to first time purchasers.

[smartcode_project:default project_id=28487]

First home buyers make up less than half of that proportion of the market now: only 12.2% of all dwellings financed in July 2014 were first home purchases.

Some think the apparent decline in first home buyers is the result of an increasing unwillingness to overcommit on housing - or to commit at all. Others believe the ABS needs to revise its methods.

There's no single number that represents how much a first home buyer should spend. But if you're purchasing your first home, be realistic and know your limit.
</body></html>

jrichardson-uRX5hFdKfN

How much should you spend on your first home?

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Have you been refused a loan and concerned about looking elsewhere?
While there are a number of reasons you may not be eligible for the home loan you need, one may be that you aren’t seen as “serviceable”.
This, essentially, means that you are not deemed able to pay off the loan due to calculations that say you have too many other potential areas of debt that needs repaying or daily costs. If you are unsure what serviceability means, or how it is calculated, have a <a href="/expert-insights/finance/what-is-serviceability-investment-terms-explained">look at our investment terms explained article here</a>.
In the meantime, there are other things you can do to increase your serviceability and secure the loan you want.
<ol>
<li>
Shop around Firstly, see if you are calculated as being more serviceable elsewhere. An understanding of different lending policies, which a good broker may be a help with, can assist. You can read this article here about <a href="/expert-insights/finance/how-to-pick-the-best-mortgage-broker">choosing the best mortgage broker for you</a>. Different calculations are used by different banks and lenders. 
</li>
<li>
Pay down debt (and avoid taking on more!) If you can, it’s time to supercharge your debt repayments and clear them as quickly as possible. This is particularly good for buyers who are not intending to get into the market for some time. Avoid upgrading your phone to a new expensive plan and taking on increasing levels of debt, all of these additional costs will decrease your serviceability (and your borrowing power). You might also consider putting off that extra child until you've purchased - children, due to the high level of expenditure required to raise them, are seen in the "outgoings" category. Consolidating debt and spending some time paying this down may be one of the most important options here. 
</li>
<li>
Reduce credit card limits High credit card limits affect your serviceability – even if you haven’t used them to their limits and do not intend to. Reduce them as best possible. You can increase them after you have your loan. 
</li>
<li>
Decrease other overheads where possible Yellow Brick Road’s <a href="/expert-insights/finance/the-20-tips-to-ensure-you-get-your-loan">Mark Bouris recommends reducing your overheads</a>, as well as avoiding taking on more. “Fancy car leases, big smart phone plans and cable TV charges can reduce your net income and affect your serviceability,” he says as one of his 20 tips to ensure you get your loan. You could consider consolidating short-term debt into longer term debt to reduce your monthly repayments. 
</li>
<li>
Ensure all your income is taken into account Usually, tax returns and payslips are used to determine your income. If you receive substantial sums in bonuses or commissions each year that significantly lifts your overall earnings, and this hasn’t been addressed by your broker, then you want to bring it up. 
</li>
<li>
Split debt evenly with your partner You may be purchasing together, but if the property is to be secured in your own name then make sure you have evenly divided up liabilities between both of you. Noting down all the debt and outgoings as your own, rather than as 50/50 in your relationship, will significantly lower your personal borrowing capacity in the eyes of a lender.
</li>
</ol>
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jduke-EHk3XBmHkn

Lender says no? Tips and tricks for increasing your borrowing capacity

<html><body>
First time buyers are, by definition, less experienced than those purchasing around them.
Competition is rife, the financial consequences are significant and every purchaser wants to buy well and make good decisions.
Despite this, there are mistakes that Property Observer hears first time buyers making regularly that are all avoidable. Here are our top 10.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-one.jpg" width="32" height="32" style="float: left;">Overextending yourself
There’s nothing more painful than diving in, thinking that you’re going to handle your repayments well, and then struggling each time your mortgage needs paying.
Property requires some hefty upfront costs, even if you’re getting a first home owner’s grant, and selling too soon because you aren’t prepared for the financial commitment can cause you to lose money in the long run, or living off of tinned baked beans.
Think this isn’t common? In October 2013, a <a href="/expert-insights/almost-50-new-buyers-concerned-about-affording-repayments-mortgage-choice">Mortgage Choice survey saw almost 50% of new buyers concerned about being able to afford their repayments</a>. Ensure you aren’t one of them.
Solution: Prepare yourself in advance and get honest about what you can afford. This means knowing about the process of getting your first loan, the implications and ensuring you know what you can and cannot put aside in the way of funds.
<ul>
<li><a href="/expert-insights/buying/getting-your-first-loan-heres-what-you-need-to-know">Getting your first loan? Here’s what you need to know </a></li>
<li>
<a href="/expert-insights/buying/getting-your-first-loan-heres-what-you-need-to-know">Preparing yourself for debt: </a><a href="/expert-insights/buying/preparing-yourself-for-debt-10-things-to-do-now-to-make-home-ownership-easier">10 things to do now to make home ownership easier</a>
</li>
<li><a href="/expert-insights/finance/what-to-do-if-you-are-in-mortgage-stress">What do I do if I am in mortgage stress?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-two.jpg" width="32" height="31" style="float: left;">Purchasing for the wrong reasons
There are many reasons to consider home ownership and there are many reasons people opt to continue renting or to push back their property buying goals. These are individual circumstances and no one, other than yourself, can decide whether or not entering into a long-term mortgage and financial commitment is going to be right. 
Unfortunately, many home buyers buy for the wrong reasons – this could be due to familial or peer expectations, “fear of missing out” or any number of reasons. You do not want to resent your decision.
Solution: Make sure you buy when you’re ready, and you know the reasons why home ownership is important to you. This is no small decision, and should be looked at logically and carefully.
Think about your ‘pros’ and ‘cons’ and always try to be your own devil’s advocate.
Finally, ask yourself: Why do I want to buy a property? Never feel rushed into a purchase.
<ul>
<li><a href="/expert-insights/buying/the-10-signs-that-you-may-not-be-ready-to-buy">The 10 signs that you may not be ready to buy</a></li>
<li><a href="/expert-insights/renting-v-buying-how-does-it-stack-up-for-you">Renting v buying: How does it stack up for you?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">Not researching an area properly
It's easy to get swept up in buying the perfect home and not thinking about whether it's in the perfect area.
Big backyards, high ceilings and nice furnishings are all fun - considering whether the suburb is well serviced by public transport, serves as an employment hub, has good schools or houses unattractive factories is not so fun.
But the suburb of your prospective purchase is one of the main determinants of its future (and current) value, so pay attention.
Even if the house is perfect, many people search for properties by area, not house type, so it could go unnoticed when you're trying to sell the home.
Solution: Check out suburbs' median prices and historical price growth. See if it offers amenities that attract other buyers, and keep an eye on any news (like future infrastructure developments) that could affect its future value.
<ul>
<li><a href="https://www.propertyobserver.com.au/finding/location/suburb-data" target="_blank">Our suburb data pages </a></li>
<li><a href="https://www.propertyobserver.com.au/finding/residential-investment/suburb-spotlights" target="_blank">The suburb spotlight series </a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">Not getting the right insurance
Insurance is another part of a home purchase that often goes overlooked - it's hardly as exciting as the other parts of a house hunt.
If you're purchasing your first home with a deposit under 20%, you'll often need lenders mortgage insurance, to protect the lenders against a default. It's worth investigating this option as it could affect how you buy your home. But once you purchase your home, you'll need to protect yourself against natural disaster, vandalism or theft, which can all cost you a lot of money at unexpected times.
You also might find yourself in financial hardship if you are injured or suffer an illness down the line.
Solution: Home and contents insurance will protect your assets, and personal insurance will protect you (don't think you're too young to need it). Income insurance will help cover you if your income is ever threatened by illness or injury and you find it hard to keep up with your mortgage payments or bills.
<ul>
<li><a href="/expert-insights/investing/first-home-buyers-need-personal-insurance-joe-sirianni">First home buyers need personal insurance</a></li>
<li><a href="/expert-insights/investing/ask-margaret-do-i-need-flood-insurance-if-i-pay-body-corporate-fees">Ask Margaret: Do I need insurance if I pay body corporate fees? </a></li>
<li><a href="/expert-insights/buying/you-insure-your-home-so-why-not-your-income">You insure your home, but why not your income?</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">Taking “bad” advice
"Spruikers", "property sharks"; you’ve probably heard all the names given to the charlatans of the property industry.
However, bad advice comes from all quarters – family, paid advisers and members of the industry. Many property buyers have bought in areas on bad advice, even from well-meaning uncles and aunts at a barbecue, and have paid for it in opportunity cost and often more.
Solution: Do your due diligence on all the advice you’re given. This may mean double checking the reasons someone thinks an area is a hotspot and doing research on the area yourself. It could be checking to see whether that person is really looking out for your best interests.
Bad advice takes many forms, <a href="/expert-insights/investing/the-deadly-formula-of-bad-investment-advice">even masquerading as news on occasion</a>, and you must always be careful about the information you take onboard.
<ul>
<li>The property investment pandemic: <a href="/expert-insights/the-property-investment-pandemic-how-to-avoid-spruikers-and-bad-advice">How to avoid spruikers and bad advice </a>
</li>
<li>Free advice: <a href="/expert-insights/buying/free-advice-five-experts-you-can-go-to-for-information">Five experts you can go to for information</a>
</li>
</ul>
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">Not getting a building inspection
While it's easy to tumble into the purchase process, you need to know that the house you're hoping to buy is stable and sound - especially if you're not familiar with properties. If you don't carry out a building inspection before purchasing a home, you could be saddled with an unsafe house with structural problems or asbestos.
Those problems will end up costing you a lot of money to fix up further down the line.
If you're intending to carry out renovations or alterations in the future you need to know what is possible with the existing house.
Solution: Before you sign a contract, have a reputable independent builder carry out a building inspection. While they may not be able to catch every problem, they can save you from making a bad purchase. <a href="/news/how-to-choose-a-building-and-pest-inspector"></a>
<ul>
<li><a href="/news/how-to-choose-a-building-and-pest-inspector">How to choose a building and pest inspector</a></li>
<li><a href="/expert-insights/investing/the-importance-of-building-inspections-in-property-transactions">The importance of building inspections in property transactions </a></li>
<li><a href="/expert-insights/buying/how-to-navigate-the-building-and-pest-inspection">How to navigate the building and pest inspection</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">Being unwilling to compromise
Buying your first house is a big decision, and one you want to get right. But know now: there's no such thing as the perfect property. If you're operating on a tight budget, don't expect to get a perfect home, with the perfect aspect, in your dream suburb, down the road from your favourite cafe. You're at the beginning of your property buying journey, not the end of it.
Waiting too long for the perfect home may leave you downwind of a market that's long left you behind. You may realise that the three bedroom house that was 10 minutes further out than you had hoped for is now well out of your budget, even though you could have purchased it six months ago.
Solution: To know when to compromise and when to stick to your guns, think about the fundamentals that affect property values - location, land size and aspect, among others - and think about much they matter to you and to potential buyers further down the track.
Remember to consider your wants in the future - will you want to stay in this home for more than 10 years, or are you planning to move overseas or to a more familiy-friendly house later on?
The best house you can afford now might not be the best house for you in the future, and that's alright.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">
Not getting pre-approval
It’s a simple step, but one that many don’t consider: the simple pre-approval.
Not obtaining this piece of assurance, even with the limitations it has, can leave you unsure about what you can afford to purchase and subsequently nervous in an auction situation.
It may cause you to bid beyond your means and put you in substantial strife, particularly when buying at auction where cooling off periods and other conditions do not apply. Consider pre-approval a little added boost of confidence.
Solution: Get home loan pre-approval!
Understand the restrictions around the approval, and know how regularly you need to have it updated, however going through this process is one of the most powerful pre-auction and pre-property searching steps you have available.
It will also let you know what property is and is not within your purchasing range, allowing you to rule out some of the pricier options you’ve been looking at earlier on – before you get too attached.
<ul>
<li><a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval">A quick guide to home loan pre-approval</a></li>
<li><a href="/news/five-things-you-must-do-before-buying">Five things you must do before buying</a></li>
<li><a href="/expert-insights/finance/why-you-should-secure-finance-pre-approval-before-looking-for-property">Why you should secure finance pre-approval before looking for property</a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-nine.jpg" width="33" height="31" style="float: left;">Buying with the wrong person
It could be your best friend, your sibling, or even your spouse - no matter who it is, it only takes one person in a property buying duo to sink the ship.
As soon as you purchase with another person, you'll realise that their financial woes are your financial woes. Suddenly, you'll be very interested in their employment status, their spending habits and their ability to make mortgage payments.
Solution: If you're buying with another person, make sure you have clear and simple financing arrangements, with a contingency plan. Also consider your future investment plans - if you decide you want to sell the house when the market is hot in five years but your friend wants to stay on, or she decides to move overseas, you'll be faced with some difficult decisions.
Make sure you go into any buying decisions with open eyes, and think about having a lawyer go over any joint financing agreements you make.
<ul>
<li><a href="/expert-insights/buying/should-i-buy-a-property-with-a-friend-six-things-to-consider-first-ask-margaret">Ask Margaret: Should I buy a property with a friend? </a></li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/07/04/yellow-ten.jpg" width="32" height="31" style="float: left;">Buying when it’s too “hot”
A hot market, where everyone is rushing in to buy buy buy, is not always going to be the most prudent place for a first home buyer to look.
Investors regularly rush in and lose money by seeking to make a quick buck in a hotspot. It’s commonly said that when you’re buying with the crowd, you’ve missed most of the growth already.
First time buyers are especially vulnerable to the market’s heat and inexperience. At a busy auction, it can be much easier to overpay if bids are busy and emotions are running high. If you can’t stick to your guns on what you’re prepared to pay, then you should not be considering a market that’s running too hot.
Solution: Know how to identify a market that is hot, <a href="/news/nsw/the-market-psychology-behind-the-sydney-property-boom-pete-wargent">the reasons behind it</a>, and determine whether the prices are still reflecting market value.
By this stage, you should know the markets that it would be prudent to take a step back from or to enter with caution.
And if you are going to consider it? Here are <a href="/expert-insights/investing/tips-for-buying-in-a-hot-market">some tips for buying in a hot market</a>.
<ul>
<li><a href="/expert-insights/buying/my-advice-for-buying-in-a-hot-market-dont-terry-ryder">My advice for buying in a "hot" market? Don't: Terry Ryder</a></li>
<li><a href="/expert-insights/buying/investor-saturation-in-suburb-hotspots-will-have-consequences-for-residents-and-investors">Investor saturation in suburb hotspots will have consequences for residents and investors</a></li>
<li>
<a href="/expert-insights/investing/overheated-markets-set-to-see-a-2015-correction">Overheated markets set to see a 2015 correction</a><a href="/expert-insights/buying/investor-saturation-in-suburb-hotspots-will-have-consequences-for-residents-and-investors">: Michael Matusik</a>
</li>
</ul>
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10 first time buyer mistakes and how to avoid them

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For first time buyers looking for inner city living, studio apartments can be a tempting choice.
With no walls between the "bedroom" and living areas, studio apartments can be a good deal smaller than one bedroom apartments - and therefore cheaper.
A search for studio apartments in capital cities will certainly throw up cheaper and more central opportunities than can be discovered with any other property type.
This studio apartment at 204/268 Flinders Street in Melbourne is on the market with a price guide of $158,000, <a href="http:/www.realestate.com.au/property-studio-vic-melbourne-117636635" target="_blank">through Spencer Nguyen and Robert Eggers of Dingle Partners</a>. You would be hard pressed to find a non-studio apartment in such a central location.
A quick look at the apartment's floor plan reveals why it's so cheap: The bedroom doesn't share the space with the living room - there is no living room. There's hardly room for a bed, with a total area of around 18 square metres.
<img src="/images/2014/09/12/studio2.jpg" alt="">
While a studio of that size may seem unappealing to live in, they can offer attractive yields. According to the listing information, this studio is currently leased at $1,304 a month, representing a yield of 9.9%. So if you don't intend to live in a shoebox studio but instead want to rent it out, you could be receiving good value - if you feel comfortable renting it out to another person.
Such small studios in central locations are often popular with international students who need to be close to universities and haven't brought a lot of belongings. However, that can mean that the rental income is subject to seasonal variation.
This particular property was purchased for $173,000 in 2005, so the owners will have made a capital loss if it sells for its current asking price.
However, one studio apartment doesn't represent the entire market. There is plenty of variation out there in the studio market, from student shoeboxes to bright warehouse conversions. And of course, the more you pay, the better the apartment.
As with any other property, make sure you're not carried away by price. Consider the quality of the apartment you're hoping to purchase, the area and its attractiveness to future buyers and renters (remembering that both offer different gains for you).
If you're hoping to occupy the property, you should be open to compromise, but don't get carried away. Think about whether you would be happy living with a bed a metre away from your kitchen, or if it might be more prudent to save for a few more years before jumping into the market.
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Are studio apartments a good pick for first home buyers?

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It make sense to go to some local auctions as part of your research and due diligence – even if you’re not quite ready to purchase yet.
If it’s going to be worth your time and effort, then you need to know what it is you’re looking to learn. For instance, here's what Catherine Cashmore took away from <a href="/news/eight-lessons-to-learn-from-the-blocks-lacklustre-auction">The Block 2011's lacklustre auction result</a>.
Here are the five things that you should be trying to gain from heading to an auction.
<ol>
<li>
Market activity After you’ve been to a few auctions in an area, you should start to get a feel for the demand for property. Is it strong? Are there lots of bidders? Remember that just because a property draws a crowd, those attending may just be watching – and may not be genuinely interested in purchasing. Taking note of how busy it is on the day is one thing, but you should also note how many bids are made and how competitive the bidding becomes. This will let you know whether you will likely be entering an auction that will be quiet. Potentially this could give you the upper hand for lower bidding and negotiating if the property is passed in, or knowing if you need to put all your cards on the table. Keep an eye out for repeat bidders regularly attending auctions of similar properties – this can suggest who the highly motivated buyers are. 
</li>
<li>
Comparative pricing Another useful thing to note about auctions is exactly what price they end up selling or passing in for. It may take some time for auction results to be properly recorded, depending on the area you’re considering and the type of property and so to get the most real-time information possible it’s worth visiting a few. As you get to normally inspect the property one last time prior to auction, you can also note how much it went for and whether it is inferior or superior to the property you have your eye on. This should quickly let you know if what you’ve been estimating to spend will achieve you the property you want in the area. 
</li>
<li>
Reserve prices Another factor to note down is when the property is officially “on the market”. While you can’t always get a specific indication of reserve price, when a bid goes above it the auctioneer will tend to announce this. Every property is different and every vendor will set a different reserve, but this will help you prepare your strategy and to know when you might be interested in bidding. If you want to be the top bidder when a property is passed in, this will be of particular interest. 
</li>
<li>
Common language used and strategies Familiarising yourself with strategies used by buyer’s agents and common prospective purchasers, as well as the weaknesses that others have when bidding, can prepare you for when it’s your time to bid. Regular, auction success is said to be <a href="/expert-insights/investing/winning-at-auction-isnt-amount-having-the-most-money-its-about-strategy">all about the strategy you employ</a>. It’s worth also getting to grips with the process and the type of language used by auctioneers and the increments of bidding so that you don’t get thrown off. Familiarise yourself with the process so you’re more comfortable when it’s your turn. You can also become familiar with local auctioneers’ styles. Some are very good at hyping up a crowd and drawing out the bids. You should be prepared for how they may auction the property you really want. Here's Patrick Bright's <a href="/news/understanding-auction-talk-patrick-bright">guide to understanding "auction talk"</a>. 
</li>
<li>
Neighbourhood information from locals The final factor to keep an eye out for is how the locals react and what they say. A neighbour may tell you that a developer has been around trying to purchase all the properties in a specific block or of a certain size. Another might tell you about any reasons people are leaving the street, or even about other neighbours. As local experts in their own right, it pays to listen – the information may be crucial later on. Don’t feel as though you can’t ask them about the good and bad streets, or if they know of any other properties coming up for sale. As with all information, do your due diligence and confirm it yourself, but it may just lead you on to better things.
</li>
</ol>
YOU MIGHT ALSO WANT TO READ:
<a href="/expert-insights/buying/twelve-tips-for-bidding-at-property-auctions">12 tips for bidding at auction </a>
<a href="/expert-insights/buying/buying-your-first-property-at-auction-a-step-by-step-guide">A step-by-step guide to buying your first property at auction</a>
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Not ready to buy yet? Five things you can still learn at auction

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GUEST OBSERVATION
In its September meeting, the Reserve Bank decided to leave interest rates on hold at 2.5%. I believe this is positive news for Australians seeking to purchase their first home, as a low interest rate environment lowers the cost of financing this purchase.
In other good news for first home buyers, recently the HIA-CBA Housing Affordability Index posted its most favourable result in 12 years. 
In combination, these factors are likely to motivate any first home buyers who may have been sitting on the fence to enter the market and start looking for a suitable property to purchase.
I also encourage all property owners to take advantage of the borrowing environment at present, as any loan containing an interest rate with the number four or five in front of it should help a buyer over the next five to six years. It's also wise for property owners to <a href="/expert-insights/finance/unprecedented-low-interest-rates-wont-last-forever">budget for the possibility of any future rate movements in advance</a>, so that they’re adequately prepared for movements if and when they occur.
Additionally, recent price movement is also a positive indicator for the Australian property market, as value growth has started to slow after a period which saw rapid and sustained value growth across many of our capital cities.
Importantly, conditions have shifted from a sellers' market, where buyers have been willing to meet the high expectations of sellers, to a negotiators' market wherein real estate agents may need to seek to negotiate a lower price with vendors in order to close sales.
Banks and valuers are also starting to become more conservative after last year's strong house price growth, acting as two more mechanisms which will help to ensure future price growth in the property market is steady and sustainable.
Overall, I believe that the outlook for the property market continues to be positive and should present many opportunities for buyers and sellers in the Australian property market.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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ctarbey-W47GL9jwxa

Low interest rates are good news for first home buyers

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As the old adage goes “you get what you pay for”.
Novice buyers looking for good advice should be willing to pay for the latest data and for access to the experts.
In saying that, there’s plenty of currently available information available for free – and quite a few experts who are regularly available for a chat.
Real estate agents 
The <a href="/expert-insights/investing/how-to-choose-the-right-real-estate-agent">best real estate agents are local market experts</a> that can let you know what the buyer sentiment is, how long properties are taking to sell and potentially let you know about properties coming onto the market soon. They work regularly in smaller defined areas – often a collection of suburbs – and know then very well.
Here’s a sample of what you can gain from chatting with an agent:
<ul>
<li>Knowledge of the type of properties available for purchase and the price ranges for each. 
</li>
<li>An understanding of the length of time a property takes to sell and which are in higher demand. 
</li>
<li>Knowledge of the type of buyer currently looking in the area. 
</li>
<li>An historical perspective (look to well-regarded agents who have worked in the area for a while) of growth and changes. 
</li>
<li>Potential referrals to building and pest inspectors, property managers and other experts. 
</li>
<li>An idea of the prestigious areas and the not so desirable streets.</li>
</ul>
Speaking to them as a buyer, you must be aware that they are working for the vendor. They will most likely tell you things in the seller’s best interest, not in yours. One way to get around this is to speak to a real estate agent in the area who isn’t selling the property you’re considering. Alternatively, you can speak to a property manager.
Property managers
A boutique property management agency can help fill in the blanks for you around tenancies and the likelihood of your property being given a good run on the rental market.
Here’s a sample of what you can gain from chatting with a property manager:
<ul>
<li>An understanding of the types of properties that are rented first. 
</li>
<li>Clearer knowledge of how much weekly rent can be charged for different properties in different conditions. 
</li>
<li>Explanation of who the tenants are likely to be. 
</li>
<li>Knowledge of the most desired rental property qualities in the area. 
</li>
<li>An up to the minute explanation of vacancy rates and any difficulties they have in renting out certain properties.</li>
</ul>
Many property managers have very good ground-level knowledge and know exactly what their tenants do and do not like. However, in terms of forecasting and predicting how the market might shift, you may prefer to speak to a property mentor.
Property mentors and advisers 
Property mentors, many of whom are buyer’s agents of some form, have a wealth of knowledge, usually from researching markets and dealing with other investors previously. However, you need to know where their skillset lies. Some are going to be able to thoroughly explain their ideas on where markets are heading, while others will help you come up with goals and strategies to get you on track with your property investing.
Some of these experts allow free access to a point, for instance a limited number of seminars and lengthy workshops – often for whole weekends. However, they often have hefty fees after this point. If you’re not paying, then you also need to wonder where they’re getting their income from – is it through commissions?
Remember our tip: follow the money. Here are <a href="/expert-insights/10-questions-to-ask-your-property-investment-adviser">10 questions to ask an adviser before taking any advice on board</a>.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Mortgage broker or lender
For information about loans, your borrowing capacity and whether or not you can get a mortgage for the property you’ve got your eye on, there are calculators available online. However, the majority of brokers’ services are at no cost to you (they usually get a commission from the lender).
You should choose the broker wisely, ensuring that their panel of lenders is as extensive as you’d like it to be and that their understanding of your category of buyer (first home buyer or investor, for instance) is sound. You can <a href="/expert-insights/finance/how-to-pick-the-best-mortgage-broker">read some information here on how to pick a mortgage broker</a>.
Here’s a sample of what you can gain from chatting with a broker:
<ul>
<li>Knowledge of who will lend to you. 
</li>
<li>An understanding of how big your deposit needs to be and whether or not you’ll be paying LMI. 
</li>
<li>Information around types of loans available and the different features of each. 
</li>
<li>Explanations of break costs and technical jargon you might not understand. 
</li>
<li>Assistance with unusual loans, e.g. if you are going for a joint venture arrangement or having a guarantor 
</li>
<li>Assistance with pre-approval.</li>
</ul>
Local council members
Investors will have varying degrees of success in touching base with the local council, especially as some are more open to property investors than others. However, it’s always worth a call to ask some pointed questions about what is occurring in the area.
Here’s a sample of what you can gain from chatting with your local council:
<ul>
<li>Knowledge of recent or approved development applications, including specific details about them. 
</li>
<li>An understanding of the council’s growth plans for the area. 
</li>
<li>Any recent examples of significant local government spending in or around the suburb. 
</li>
<li>A point in the direction of any useful reports that they have. 
</li>
<li>Explanation of their policies around subdividing, knock down rebuilds and similar.</li>
</ul>
Here is observer <a href="/expert-insights/thorough-research-is-critical-to-dodging-property-purchase-problems">Mark Armstrong's account of how he used local council information to avoid a major property disaster</a>.
Lastly, you can always try chatting to other property investors.  They’re often in the same boat as you, are great to discuss trial and error with, and often will have stories to share you can learn from.
You can share referrals, tax tips you’ve heard and important location-based news.
Remember to be wary – investing is not one size fits all, and just because “everyone else is doing it” doesn’t mean that it’s necessarily the thing for you to do. Any novice advice, or even experienced investor advice without the necessary qualifications to back it, should be taken with the full understanding of where it is coming from.
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Free advice: Five experts you can go to for information

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First home buyers are often working with a different set of requirements than more experienced investors.
With fewer working years behind them, beginners are likely to have a smaller deposit to work with and fewer assets than upgraders or downsizers - and much less experience.
Financing is a large part - perhaps the largest part - of securing your own home, and many lenders are aware of the circumstances facing first home buyers.
Once upon a time, the Rudd government introduced First Home Savers Accounts, where savers could receive a government co-contribution of up to $1,020 on the first $6000 savers deposited each year. They were also eligible for a range of tax concessions, but were faced with a number of restrictions on when they could withdraw their money.
The First Home Saver Account scheme was <a href="/expert-insights/buying/four-things-you-must-know-about-the-axed-first-home-saver-accounts">scrapped by the Abbott government</a> this year, leaving some confused as to whether the <a href="/expert-insights/buying/do-the-first-home-saver-account-eligibility-requirements-still-apply">restrictions still apply to their accounts</a>. While ME Bank have <a href="/expert-insights/finance/me-bank-looks-for-an-answer-to-scrapping-of-first-home-saver-accounts">suggested they may offer a similar product</a> in the future, it has not yet eventuated.
Now, with no federal scheme supporting first home savers, it's up to them to seek out the best deals from lenders to finance their first purchase.
Lenders Mortgage Insurance
One option is seeking out a lender that will accept a small deposit. When putting down a deposit lower than the standard 20%, many lenders will require you to pay for lenders mortgage insurance (LMI), which will protect them against a loss should you default on your home. This isn't a product that is unique to first home buyers, but can be used by buyers across the board who don't want to make a 20% deposit.
While it might be <a href="/expert-insights/buying/what-can-you-buy-with-a-25-000-deposit">tempting to put down a 5% or 10% deposit</a> and pay the few thousand dollars for LMI, keep in mind that you're not exchanging money for equity in your home (as you would be if you increased your deposit size) and the money cannot be recovered when you sell your house.
Beyond grants, it's mostly up to mortgage brokers and lenders to deliver products that may make life easier for first home buyers. Here are some of the available options.
Guarantors
While some parents don't want to contribute money to their child's deposit, they can support a first purchase by acting as a guarantor. A guarantor has a legal obligation to pay back a loan if the borrower (often their child) can't continue making their repayments. Occasionally, a lender will require a guarantor to use their home or a large asset as security for a loan. Sometimes guarantors can set a limit on the amount they'll contribute to a loan.
With a guarantor, a first home buyer making a 10% deposit can often forgo or reduce LMI. A number of different lenders accept guarantors - Beyond Bank has a <a href="https://www.beyondbank.com.au/personal-banking/home-loans/first-home-buyers-loan" target="_blank">"Parent Equity" scheme</a>, while St George refers to the practice as a <a href="https://www.stgeorge.com.au/personal/home-loans/tools/home-loan-features/family-pledge" target="_blank">"Family Pledge"</a>.
While guarantees are often associated with parents, some lenders accept friends as guarantors. Resolve Finance offers guarantor home loans where a friend or family members use the equity in their own homes to guarantee a loan, allowing borrowers to go without a deposit.
While guarantors sound good, beware. If there is any doubt over your ability to repay your loan, you could end up costing your guarantor their home or retirement savings.
First home buyer packages
A number of lenders offer first home buyer "packages" or specialist products. The discounts or benefits they offer vary (as does their value).
Commonwealth Bank offers a <a href="https://www.commbank.com.au/personal/home-loans/first-home-buyer-offer?gclid=cotw6i6av8acfdr8vqodjbkaiw&amp;c" target="_blank">$1,000 cash bonus on your first loan</a>, which could be straightforward and appealing to some.
In South Australia, first home savers using <a href="https://www.homestart.com.au/buying-a-home/I-m/first-home-buyers" target="_blank">Home Start Finance</a> can make a deposit as low as 3% of the value of your loan, and the First Home Owner Grant is included in deposit calculations.
Meanwhile, <a href="https://www.bankmecu.com.au/borrowing/loan-packages/first-home-buyers-loan-package" target="_blank">bankmecu</a> offers a first home buyers loan package where borrowers can pay $350 per year in exchange for lower rates, three months free building insurance during settlement, 10% off  general insurance premiums and no monthly or additional repayment fees, subject to certain conditions.
Other lenders, such as the <a href="https://www.nicu.com.au/loans-home-loan-packages" target="_blank">North Ireland Credit Union</a>, get even more creative, with furniture vouchers and credit card incentives.
If you are considering a first home buyer package, go in with open eyes and take some time to do your calculations. Think about what's valuable to you - would you prefer to pay a set fee every year for the possibility of lower rates? This could be a worthwhile option, but only if the saving in interest is greater than your yearly fee. Don't simply take up first home buyer packages because they look good superficially, but consider as many loan options as you can.
In deals not exclusive to first home buyers, lenders are also <a href="/expert-insights/finance/record-low-fixed-rates-who-is-offering-them">offering record low rates: </a>ME Bank currently offers a 4.94% rate on their three year fixed rate loan. However, bear in mind that added flexibility offered by a variable loan. 
Take the time to look at the short-term incentives available, but don't forget - buying a home is a long-term commitment.
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Finance deals for first home buyers 

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Canberra continues to rank as the most affordable state in Australia, however first home buyers shouldn’t get their hopes up.
The Adelaide Bank/REIA Housing Affordability Report notes that while it looks good on paper, the reality may be a different story.
For the ninth year in a row, Canberra records the highest affordability level based on a median house price of $535,000 put into the ratio of median family income to average loan repayments. This sees the proportion for the ACT stand at 19.8%, compared to New South Wales with the worst result at 35.3%.
REIA president Peter Bushby said that the report showed a positive for Victoria, Queensland, South Australia and Tasmania home buyers, with affordability improvements over the last quarter. The ACT recorded the strongest annual improvement, despite remaining unchanged over the quarter.
However, Bushby said that first home buyers might not be consider it to be the case in the ACT.
“While on paper, Canberrans have access to the most affordable homes, I suspect many people don’t feel that this is the case, especially first home buyers,” he said.
“While the ACT recorded a 9.7% increase in the number of loans to first home buyers this quarter, this figure is down 34.4% when compared to this time last year,” Bushby explained.
With the First Home Owner Grant for established homes ending a year ago, this was unsurprising, he explained, noting that most states now have restrictions on the established market that he considers “disappointing”.
Canberra’s high median family income sat at $2,491 for the June quarter, with New South Wales recording a median family income at $1,562, where their median house price is $811,837. It seems the high earners in the ACT may be what is behind the territory’s achievement of the “most affordable” title.
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Canberran first time buyers left in the lurch, despite highest affordability level

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When rates are low, prices usually rise and first home buyers can feel shut out. 
But all is not lost if you stick to a few simple tips.
<ol>
<li>Deposit: Lenders want to see you have at least 5% of the purchase price as genuine savings (generally you'll need 10 per cent overall). You can top up with money from your parents or grandparents, but you have to show at least six months of your own savings. Start saving, now. </li>
<li>Savings: Set a goal for your deposit amount and save in a high-interest savings account that's separated from household expenses. Set a weekly deposit goal, use direct crediting and if you're a couple, have one person's income going directly into savings. </li>
<li>Reduce debt: Eliminate or reduce the limits on your credit cards and store cards. Lenders look at the limit on your cards, not your balance. </li>
<li>Grants: The First Home Owners Grant can help with your purchase. But it must be for a new home construction; you can't use it to buy the land and lenders will not treat the FHOG as part of genuine savings. Do your homework because the grant differs slightly between states. </li>
<li>Income: Lenders like to see stability and want to see evidence that you will repay the mortgage. So you should demonstrate at least six months (but preferably one year) of PAYG employment, or two years of financials and tax returns if you're self-employed. </li>
<li>Shop around: You can find variable rate mortgages in the range of 4.6 per cent to 6 per cent. The 1.4 per cent difference, on a 350,000 loan over 30 years, is worth more than $300 a month. </li>
<li>Marketing: Watch for "discount" mortgages and special low offers. The low rates last for a year or two and then revert to a much higher rate. Always look at the "comparison rate". </li>
<li>Fixed: Many first-home buyers like to balance their budget for a few years, and a fixed loan creates certainty. However, once in a fixed loan, your flexibility is restricted and you may encounter break costs if you want to sell or refinance. </li>
<li>Vary it: Variable rates fluctuate with the market but they are flexible, allowing you to repay higher amounts and deposit lump sums from bonuses and tax refunds, speeding your repayment. You can refinance a variable rate loan without penalty. </li>
<li>Offset: When you put all your income into a mortgage offset account, the balance pays down the mortgage by the amount you have in there each day. It stops interest capitalising against you as fast as monthly repayments. Offset accounts suit good budgeters. </li>
<li>Price: Don't be disheartened if you can't buy what you want - buy the next-best and build a strategy for your next property. </li>
<li>Advice: Mortgage brokers are excellent for insights, strategies and getting you a good result. They're worth talking to. </li>
<li>Always remember: When borrowing money and buying property, the same basic rules apply to everyone. So do your homework, be prepared, take some advice and go for it.</li>
</ol>
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
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