Buying your first home in Sydney is exciting — and complex. This guide brings everything together in one place: how the First Home Buyer Scheme, First Home Owner Grant, and stamp duty interact; how to set a realistic price band; and how to execute at auction or via private treaty without second-guessing yourself. Examples draw on the Inner West and Lower North Shore so decisions feel real, not theoretical.
Executive Summary (2-minute read)
- Budget before suburbs. Build a “price-vs-duty-vs-cash” ladder before you shortlist.
- Schemes & grants are tools — not the plan. Use them to reduce upfront cost, not to push past comfort.
- Sydney is micro-marketed. Street, orientation and building health beat suburb averages.
- Auction-ready wins. Pre-approval, contract review and building/strata checks must be done before you bid.
- Win in the margins. Passed-in auctions and clean terms can secure value without being the top price.
5 Quick Points
- Sort borrowing power before suburbs.
- Model stamp duty at each rung ($900k, $950k, $1.0m…).
- Prioritise floor plan, natural light and building health over cosmetics.
- Trade terms, not just dollars (settlement, inclusions, deposit timing).
- Keep a hard walk-away number — and stick to it.
What You’ll Learn & Do (the essentials, step-by-step)
First-home buyer essentials in NSW (Sydney focus)
- First Home Buyer Scheme (guarantees): Low-deposit pathway (often ~5%) that can avoid LMI if you’re eligible. Treat this as a way to reduce upfront cost — not to inflate your price band.
- First Home Owner Grant (FHOG): NSW payment for eligible new homes. Helpful, but weigh it against location, floor plan and building quality in established stock.
- Stamp duty (transfer duty): A major driver of cash at settlement; value thresholds create “cliffs”. Landing just under a key threshold can preserve buffers and renovation funds.
- Other costs to plan for: Legal reviews, building/pest or strata reports, lender/settlement fees, insurance from exchange, moving, and an initial maintenance/levy buffer.
Borrowing power & deposit strategy
- Two scenarios:
- Base case (conservative rate & expenses).
- Stretch case (only if you can sustain repayments and lifestyle).
- Deposit pathways:
- 20%: no LMI, wide lender choice, strong negotiating position.
- 10–19%: weigh LMI vs a government guarantee (eligibility applies).
- ~5% with a guarantee: effective if cash-constrained; keep buffers intact.
- Loan structure: Offset for flexibility; variable/fixed split only if it supports your prepayment plans.
- Golden rule: If a guarantee reduces upfront costs, put part of that saving into your emergency buffer, not just a higher purchase price.
Stamp duty: why thresholds matter
- Think in rungs, not a single number. Model price points (e.g., $900k, $950k, $1.0m…) and confirm duty at each rung.
- In the Inner West & Lower North Shore, a quality 2-bed apartment with parking may keep you under an FHB threshold where comparable houses won’t.
- Cash-flow beats max price. If stepping up a rung starves your buffer, stay disciplined.
Local Snapshot: Inner West & Lower North Shore
Inner West — Summer Hill, Dulwich Hill, Petersham, Lewisham, Marrickville
- Performs: mid-century and early-2000s blocks, healthy strata, parking, good light, efficient floor plans.
- Check: water ingress history, balcony/roof works, capital-works balance, special-levy risk, rail/venue acoustics.
- Pattern: “Walk-to-rail” 2-bed stock is competitive; fair to pay more for light, privacy and a resale-friendly plan.
Lower North Shore — Lane Cove, Artarmon, Wollstonecraft, Neutral Bay, Cremorne
- Performs: larger 1–2 bedders in older, well-built blocks near frequent buses/rail; green outlooks.
- Check: lift/plant age, façade works, tight street parking, aircraft/bridge noise corridors.
- Pattern: Buy on floor plan and light — not just presentation. North-facing or quiet-rear aspects often justify a premium.
Practical Buyer Playbook (do this in order)
Stage 1 — Finance & Framework (Week 1–2)
- Broker pre-assessment → pre-approval.
- Build your price-vs-duty-vs-cash ladder; ring-fence a post-settlement buffer.
Stage 2 — Evidence & Shortlist (Week 2–3)
- Define 2–3 target pockets per region (streets/blocks, not just suburbs).
- Pull 6–10 recent comparable sales; carry the 3 cleanest on a one-pager.
- Map agent dynamics (dominant offices, auction cadence, days-on-market).
Stage 3 — Due Diligence (Week 3–5)
- Contract review by a Sydney property lawyer/conveyancer.
- Houses/townhouses: building & pest, roof/drainage, moisture.
- Apartments: strata deep dive (capital works, special levies, defects, by-laws, insurance, litigation).
- Write your price & terms strategy (what you’ll trade and what you won’t).
Stage 4 — Offer or Auction (Days)
- Private treaty: stage offers; trade settlement/inclusions; anchor on evidence.
- Auction: set a visible walk-away number; pre-clear conditions; bid with tempo and compress increments; pause if the tempo turns frantic.
Stage 5 — Passed-In Window (Hours)
- Secure first right; one reasoned counter anchored to your comps; tight time limits to reduce re-shopping.
Stage 6 — Exchange → Settlement (4–6 Weeks)
- Finance final; insurance from exchange; pre-settlement inspection; utility changeovers; keys.
Stamp Duty Ladder (Sydney first-home buyer use cases)
Assumptions: Principal place of residence. FHBAS concessions/exemptions apply up to $1.0m (full exemption at ≤$800k; sliding concession $800k–$1.0m). Above $1.0m, standard NSW transfer duty applies. Always confirm with the official calculator before committing.
A) Case study: $880k–$980k two-bed apartments (Summer Hill / Dulwich Hill)
Use these rungs to frame cash-on-hand (deposit + duty + costs + buffer). Concessional examples at nearby price points:
| Price | Duty if FHB-eligible | What to know |
| $850,000 | $9,934 | Within concessional band; tapering begins above $800k. |
| $900,000 | $19,868 | Still concessional; add lender/settlement costs. |
| $950,000 | $29,801 | Concession continues to taper as price rises. |
| $990,000 | $37,748 | Near the upper limit of FHB concession. |
For prices such as $880k, $920k, $960k, $980k, expect duty to fall between the nearest rungs above — verify the exact figure with the NSW calculator before offers. Figures reflect current first-home buyer concession examples. Money.com.au
B) Case study: $1.30m–$1.45m townhouses (Lane Cove / Artarmon)
No FHB concession above $1.0m — use standard duty:
| Price | Estimated standard duty | What to know |
| $1,200,000 | $49,055 | Below premium-duty threshold. |
| $1,300,000 | $54,555 | Standard sliding scale. |
| $1,400,000 | $60,055 | Keep a maintenance/levy buffer intact. |
| $1,500,000 | $65,555 | Confirm exacts with the official calculator. |
Standard rate brackets are published and indexed by Revenue NSW; the examples here reflect the current scale. For absolute accuracy on your specific price, run the official calculator.
How to use this ladder
Choose the rung that matches your likely purchase price and add it to your cash model. If moving one rung up forces you to cut the buffer, stay disciplined. The ladder also anchors negotiations: you can demonstrate how an extra $25k on price expands duty and erodes your buffer.
What to focus on at inspections (and what to ignore)
Focus: floor plan function, natural light/orientation, noise/privacy, building health (or strata balance/levies and any litigation), parking usability, micro-location (rat-runs, school bell zones, late-night venues).
Ignore (within reason): paint, carpet, benchtops, styling. Don’t ignore structural, moisture, or strata red flags.
Negotiation & Auction Tactics (first-home buyer edition)
- Evidence first: three clean comparables (same bed/bath/parking, similar condition, same pocket).
- Trade terms, not just dollars: settlement timing, inclusions, deposit arrangements can beat higher prices.
- Campaign psychology: watch guide changes, repeat opens, and agent language shifts.
- At auction: open with clarity, use odd increments, compress bids; pause to confer if the tempo spikes.
- If passed in: act quickly, keep it clinical, and anchor on your comp sheet.
Pros & Cons of First-Home Buyer Pathways
Pros
- Low-deposit pathways can bring better-located, livable homes into reach sooner.
- Duty concessions/exemptions reduce cash at settlement.
- Earlier entry can lock stability and capture more years of growth.
- Strong demand for quality stock supports future resale if you buy well.
Cons
- Thin buffers risk stress if rates or levies rise.
- Threshold “cliffs” can distort choices if you buy to a line.
- New-build reliance introduces timing/defect risks.
- Spring competition can push emotional decisions.
FAQs
1) Scheme vs Grant — what’s the difference?
The Scheme (Commonwealth guarantees) helps eligible buyers purchase with a small deposit, often without LMI. The Grant is a NSW payment for eligible new homes. They solve different problems and can sometimes be combined.
2) Do first-home buyers always pay stamp duty in NSW?
Not always. It depends on eligibility and price thresholds; some buyers get exemptions or concessional duty within set value limits. Model it early.
3) Is buying new better to access the FHOG?
Only if the overall value stacks up. Established apartments often offer superior location, light and floor plans with stronger resale depth. See NSW’s grant details and weigh them against fundamentals.
4) How much deposit is “enough” in Sydney?
Enough to keep repayments and buffers comfortable after stress-testing — not just the bank’s maximum approval. Consider a guarantee pathway if eligible; keep a real emergency buffer.
5) What extra costs should I plan for?
Legal, building/pest or strata, lender/settlement fees, insurance from exchange, moving, and a maintenance/levy buffer — separate from your deposit and duty.
6) Are auctions a bad idea for first-home buyers?
They’re fine if you’re prepared. Transparency helps; the key is a pre-set walk-away number, clean due diligence, and disciplined bidding.
7) Should I wait for a better market?
If a quality property fits comfortably today, time in the right asset usually beats trying to time the market. Stick to fundamentals and your buffer.
How a Buyer’s Agent Helps First-Home Buyers
Linking & Evidence
| Type | Anchor / Description | URL |
| Internal | Parker Hadley — Contact | https://parkerhadley.com.au/contact/ |
| Internal | Parker Hadley — Home | https://parkerhadley.com.au/ |
| Internal | Parker Hadley — Blog | https://parkerhadley.com.au/blog/ |
| External (Govt) | Revenue NSW — Transfer Duty | https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty |
| External (Govt) | Revenue NSW — First Home Buyers Assistance Scheme (FHBAS) | https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme |
| External (Govt) | Service NSW — Duty Calculator | https://www.service.nsw.gov.au/transaction/calculate-the-stamp-duty-on-the-sale-of-land-or-businesses-in-nsw |
| External (Reference) | Money.com.au — NSW FHB concession examples (850k–990k) | https://www.money.com.au/home-loans/calculators/stamp-duty-calculator/nsw |
