Get into Your First Home from $189k: 5 Tips for Buyers

With the challenges of buying a first home making headlines, it could seem like an impossible dream. However, that doesn’t have to be the case.

If you dig a little deeper, you can find some smart ways to break into property ownership in 2025, including snapping up a stylish, contemporary home design for just $189,000*.

Here are five tips from the experts to get you on track.

1. Get to know the market

The rental crisis and cost of living are some of the most prevalent challenges facing first home buyers this year, says Bradley Alba, new homes consultant at Homebuyers Centre.

“It’s the affordability piece, saving their deposits and loan servicing,” he says.

However, some positive changes are underway that could open up opportunities.

For example, there has been some debate about reviewing the loan servicing buffer.

“It’s currently at 3% and the exciting thing is they’re potentially changing that to make it easier for people to enter the market,” says Alba.

Navigating the market as a first-home buyer doesn’t have to be overwhelming.

Angus Moore, senior economist at REA Group, adds that the past year has seen some steadier interest rates after the rapid rises across 2022 and 2023.

He says this is one possible factor that has led to an uptick in first home buyers entering the market.

“We saw more first-home buyer activity in 2024 than in 2023, with 14% more first home buyers over the first nine months of 2024 than in 2023,” he says.

2. Be open to different pathways

Saving a deposit and getting a bank loan may be the most common path to a first home, but plenty of buyers are exploring different approaches.

For example, Alba says some builders, such as Homebuyers Centre, have in-house brokers who can help you access a low deposit scheme, such as the Australian Government’s First Home Guarantee (FHBG).

Eligible buyers need as little as a 5% deposit and are exempt from Lender’s Mortgage Insurance (LMI).

You could also be eligible for grants, such as the First Home Owner Grant (FHOG worth $10,000), or concessions on stamp duty.

“In the current market, there are also a lot of promotions from builders and developers,” says Alba.

“You can even look at getting low deposits with developers to secure land that will title further away but could grow in value while you save more to build.”

It doesn’t have to be a one-size-fits-all approach when it comes to getting into your first home.

3. Create the best team of experts to support your journey

There are many ins and outs to first home buying, and it’s likely that your friends and family will all have opinions to share.

“The problem is, they might have bought their house and land a long time ago when it all just cost $200,000 and interest rates were completely different,” says Alba.

He recommends speaking to professionals at Homebuyers Centre for the most up-to-date insights.

He adds that Homebuyers Centre has a partnership with Resolve Finance, which specialises in land and construction and can help you get your finances on track.

“Just by speaking to a broker, you might be able to consolidate debt to help increase your borrowing power,” he says.

Enlisting the help from the right experts will make a huge difference when it comes to buying a home.

4. Benefit from an affordable design

Moore reports that first home buyers in Victoria are borrowing an average of $520,000 to buy, which is a little lower than the Australia-wide average of $540,000.

However, Alba points out that this figure could be lower if you opt for a builder that specialises in the first home buyer market.

“At Homebuyers Centre, we’ve designed four different house designs specifically for this market,” he says.

“Starting at $189,000*, our Essence 17 is your three-bedroom, two-bathroom, double car garage design, which is one of our most popular sellers.”

Alba says the home is ideal for building in Melbourne greenfield areas, and buyers can select from two colour schemes and upgrades to suit their needs and budgets.

Great design doesn’t have to break the bank.

5. Get inspired

As you find your way into the property market, it can help to learn how other people have done it.

Alba says he recently helped a young couple in their 20s secure their first home, even though they only had $5000 saved.

“We referred them to our My Home Plan program^ and the team set them up with an online portal and a finance specialist who showed them what they needed to save each month,” he says.

“We also teamed up with a developer to allow us to do a lower deposit on the land side of things. They had close to a year for their land to title, and they saved in the meantime.”

As the couple hit key savings targets, Homebuyers Centre provided them with rewards in the form of upgrades to their home.

“When the land titled, the clients were also able to obtain a spot in a low deposit loan scheme, so they only needed a 5% deposit and they didn’t have to pay Lender’s Mortgage Insurance, which was great,” he says.