Buying your first home in Australia in 2026 is exciting — but it can also feel overwhelming. One of the biggest decisions first home buyers face is whether to buy a brand-new property or an established home.
While new homes are often heavily marketed to first home buyers, they aren’t always the best long-term option. The right choice depends on your budget, lifestyle goals, borrowing power, and future plans.
Here’s what every first home buyer should understand before committing.
Why This Decision Matters for First Home Buyers
Your first property sets the foundation for your financial future. The property you choose can affect:
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How comfortable your repayments are
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How much your property grows in value over time
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Your ability to refinance, renovate or upgrade later
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Your eligibility for first home buyer grants and concessions
That’s why it’s important not to rush this decision — even when the pressure to “just get into the market” feels strong.
Buying a New Home as a First Home Buyer in 2026
New builds, house-and-land packages and off-the-plan properties remain popular with first home buyers — and for good reason.
Why New Homes Appeal to First Home Buyers
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Modern design and move-in-ready finishes
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Lower short-term maintenance costs
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Builder warranties and energy efficiency
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Possible eligibility for First Home Owner Grants (subject to state criteria)
What First Home Buyers Need to Watch Out For
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New properties often have a lower land value component, which can limit long-term growth
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Oversupply in new estates can affect resale value
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Developer incentives are usually built into the price
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Valuations may come in lower than the contract price, impacting your loan
New homes can work well for some first home buyers — but they aren’t automatically the safest financial choice.
Buying an Established Home as Your First Property
Established homes continue to attract first home buyers who prioritise location, long-term growth and flexibility.
Benefits of Established Homes for First Home Buyers
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Higher land-to-building ratio, supporting stronger long-term growth
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Access to established suburbs close to schools, transport and jobs
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Less risk of oversupply compared to new estates
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Opportunity to add value over time through renovations
Things to Budget For
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Maintenance or renovation costs
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Building and pest inspections
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Loan structuring if renovations are planned in the future
For many first home buyers, an older home in the right area can offer a better long-term outcome — even if it needs some work.
How Your First Home Choice Affects Your Home Loan in 2026
As a first home buyer, the property you choose directly affects your home loan options, including:
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Borrowing capacity and lender servicing assessments
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Loan-to-Value Ratio (LVR) and whether LMI applies
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Access to first home buyer schemes, including low-deposit options
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Loan features like offset accounts, redraw and fixed vs variable splits
This is where professional advice makes a huge difference — especially for first home buyers navigating the process for the first time.
Common Mistakes First Home Buyers Make
🚩 Choosing a property based only on marketing
🚩 Assuming new homes are always better
🚩 Stretching borrowing capacity without considering lifestyle
🚩 Not getting loan advice before signing a contract
Avoiding these mistakes can save you tens of thousands of dollars over the life of your loan.
So… Should First Home Buyers Buy New or Old in 2026?
There’s no single “right” answer.
The best option depends on:
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Your income and deposit
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Whether you value growth, lifestyle or low maintenance
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How long you plan to stay in the property
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How your loan is structured from day one
The key is making a decision that supports your long-term goals, not just getting into the market quickly.
First Home Buyer in 2026? Speak to a Broker Before You Buy
Before you make an offer or sign a contract, I can help you:
✔ Understand your true borrowing power
✔ Access first home buyer schemes and incentives
✔ Compare loan options across multiple lenders
✔ Structure your first home loan for flexibility and peace of mind
👉 Contact me, Janice from LoanLocation, for personalised first home buyer advice and a clear plan before you buy.