First Home Buyers Guide in NSW

Archie Sol Posted on 22 Jan 2026

Buying your first home in NSW can feel like a lot. Prices can be high. Competition can be fast. Paperwork can be confusing.

This guide is a simple roadmap for buying a property in Sydney and Western Sydney. It is written for first home buyers who want clear steps and fewer surprises.

Step 1: Set your budget for buying a home

Start with the numbers. Work out what you can afford each month, not just what you can borrow.

Include:

Your deposit and savings buffer
Loan repayments at a higher rate than today
Ongoing costs like rates, insurance, and maintenance
One-off costs like inspections and legal fees

If you are planning to buy an investment property later, this is still useful. It helps you build good habits early.

Step 2: Learn what help first home buyers can get in NSW

NSW has support that can reduce upfront costs for eligible buyers.

Two common options are:

First Home Buyers Assistance Scheme (transfer duty relief). Full exemption may apply up to $800,000, with concessional rates up to $1,000,000 for homes. Different thresholds apply for vacant land.
First Home Owner Grant (New Homes). In NSW it is $10,000 for eligible buyers purchasing or building a new home, including off-the-plan and substantially renovated homes.

There are also federal options like the Australian Government’s 5% Deposit Scheme, which can help eligible buyers purchase with a smaller deposit and avoid LMI.

Rules change. Always check current eligibility before you commit.

Step 3: Choose where to buy property in Sydney and Western Sydney

Suburb choice affects price, lifestyle, and resale value. It also affects how competitive the buying process feels. Many first home buyers look in areas such as Kellyville, Glenmore Park, Jordan Springs, Cranebrook, Box Hill, Schofields, Penrith, and Claremont Meadows.

Make a short list of non-negotiables. Then inspect a lot of homes. You learn faster in person.

Step 4: Understand the ways to buy a property in NSW

Private treaty

This is the most common method.
You negotiate with the seller through the agent.
In NSW, buyers usually have a 5 business day cooling-off period after exchange, unless it is waived or excluded.

Auction

If you buy at auction, there is usually no cooling-off period.
If you win, you sign and pay the deposit straight away.
Finance and inspections need to be sorted before auction day.

Off the plan

You are buying a property that is not finished yet.
It can suit some buyers, but you need to understand timelines, inclusions, and contract terms.

Step 5: Do your checks before you sign

This step protects you from expensive surprises.

Contract review

Have a conveyancer or solicitor review the contract of sale before you commit. They will check conditions, inclusions, and any red flags.

Building and pest inspection

Do not skip it if you are serious. It can save you thousands and give you negotiation power.

Strata report if applicable

If you are buying a unit or townhouse in a strata scheme, read the strata records. Look at levies, sinking funds, and any known issues.

Step 6: Make an offer the smart way

Start with a clear price limit. Do not chase emotion.

In private treaty, put your offer in writing. Consider conditions like finance approval and satisfactory inspections.

Also understand the risk of gazumping. The deal is not locked in until contracts are exchanged.

Step 7: Exchange, cooling-off, and settlement

Once contracts are exchanged, the process becomes formal. Your conveyancer manages the legal steps. Your lender finalises finance.

Cooling-off in NSW is typically five business days for residential purchases, unless excluded. Settlement timing varies, often weeks after exchange.

Real Homes Realty and buying your first home

Real Homes Realty supports buyers and owners across Sydney and Western Sydney, including Penrith and surrounding suburbs. We bring local market knowledge, clear communication, and practical guidance through each stage of buying a home.

Real Homes Realty is also recognised as a top performing agency with many prestigious awards. For sellers, we use a proven marketing and sales strategy that gets results, supported by professional market appraisals and state-of-the-art marketing techniques specialising in the listing and selling of your property.

First Home Buyer NSW checklist for your next inspection

Before you attend inspections, have these ready:

Pre-approval or a clear borrowing estimate
A shortlist of must-haves and deal-breakers
Questions for the agent about the contract, inclusions, and timelines
A plan for building and pest inspections
A conveyancer ready to review the contract quickly

Buying your first property in NSW with confidence

A first home purchase gets easier when you follow a clear process.
Budget first. Research suburbs. Understand the buying method. Check the contract. Do the inspections. Then commit with confidence.

If you stay organised, you will make better decisions and avoid the common traps first home buyers face in NSW.