Thinking about buying property? 6 questions to ask first
Written and accurate as at: Nov 14, 2025 Current Stats & Facts
Despite elevated interest rates and eye-watering property prices, Australians’ obsession with real estate continues unabated. If you or your children are thinking of taking your first steps up the property ladder, you’ll need to have a clear idea of what you’re getting into. Here are six questions you’ll need to ask before you make a move.
Are you buying to live in or investing?
First things first, are you buying a home to live in or an investment property?
If it’s the former, your priorities will probably be more emotional and lifestyle-driven (think location, commute, and quality of the neighbourhood) than based on cold, hard numbers.
If you're investing, you'll need to research suburbs with strong rental yields and potential for capital growth. You should also consider how easy the property will be to manage, whether it will appeal to a broad range of tenants, and how ongoing costs (like maintenance and strata fees) might affect your return.
Do you intend to buy your forever home?
Are you looking for a place to live for the next five to ten years, or will this be your forever home? If you’re in it for the long haul, try to imagine what your future self will need when compiling your shortlist of properties.
For example, a small two-bedroom apartment might be perfect for a couple now. But if you plan on having kids, you’ll need to think about extra bedrooms, proximity to good schools and parks, and even things like a separate study to work in.
Are you eligible for any grants?
For many first home buyers it’s an uphill battle trying to get into the market, but fortunately there are a number of government grants and concessions out there that can help. These can provide a much-needed leg-up, but make sure you read the eligibility criteria carefully as they often include caps on income and property price.
Some common programs include:
- First Home Owner Grant (FHOG): a one-off grant aimed at helping first home buyers build or purchase a new or substantially renovated home.
- Home Guarantee Scheme: lets eligible first-home buyers purchase a home with a deposit as low as 5% without paying for Lenders Mortgage Insurance.
- Stamp duty concessions: many states offer reductions or exemptions on stamp duty for eligible first-home buyers.
How much are you compromising?
When scouting for your next home, try to keep what's most important to you front of mind. Are you close to shops, cafes, and public transport? Does the neighbourhood have the sense of community you’re after? And if there’s a busy road or flight path nearby, will you be able to tolerate the noise?
Some compromise might be necessary, but you don’t want to settle so much that you wind up unhappy. To avoid any future headaches, make a list of your non-negotiables and your nice-to-haves, and prioritise features that will support the lifestyle you want in the long run.
Are your finances in order?
While most lenders prefer to see a deposit of at least 20% of a property’s value, that doesn’t mean you’re not able to borrow with less. Assuming the rest of your application is strong, lenders might be happy to lend you money on the condition you purchase Lenders Mortgage Insurance. This is a type of insurance that protects your lender in case you default on your loan.
Beyond the deposit, you’ll have to budget for plenty of upfront and ongoing costs. These typically include stamp duty, conveyancing fees, mortgage repayments, council and water rates, home and contents insurance, as well as general upkeep and repairs
Are you clear on what you’re buying?
Before you bid at an auction or sign a contract, you should be 100% clear on the state of the property. Yes, you might be feeling pressure to make a move, but you don’t want to let things like structural issues, termite infestations or rising damp go unnoticed and wind up causing problems down the track.
What’s more, properties can also come with rules that could stop you making the changes you want to your home. That includes strata restrictions if you're buying a unit, and heritage listings on older properties that prohibit you from altering the facade or making significant changes without a lengthy and expensive approval process.
