The most important questions for first home buyers in Australia are the ones that don’t appear on standard checklists — about structure, vendor motivation, building history, serviceability stress-testing, and your own emotional readiness. Knowing what to ask before you need to ask it is one of the most protective things you can do.
There is no shortage of first home buyer checklists on the internet.
Most of them are reasonable. A lot of them are generic. Almost none of them include the questions that have genuinely protected the buyers I’ve worked with — the ones that changed the outcome, or stopped them from making a very expensive mistake.
The problem with not knowing what to ask isn’t just that you miss information. It’s that you don’t know you’re missing it. You can walk through a property, meet with a broker, read a contract, and feel like everything is fine — because nothing alarmed you. Not because nothing was wrong.
These are the questions that fill those gaps.
The question you don’t know to ask is the most expensive one you’ll never ask.
Before You Start Looking
Most first home buyers spend months looking at properties before they’ve answered the foundational questions. Then they find something they love — and they have to make rushed decisions under pressure that should have been made long before.
What’s my actual comfortable borrowing limit — not the bank’s maximum?
Your lender will tell you the most they’re willing to lend. That is not the same as what you can comfortably afford. Banks use a serviceability buffer, but they don’t factor in your lifestyle, your career plans, or what a rate increase of two to three percent would feel like in your actual life.
Run the numbers yourself. Or get your mortgage broker to run them with you, not just for you. For more on how to choose a broker, see: thecontinuum.com.au/insights/what-is-a-mortgage-broker-australia
Is my first property going to be a home or an investment — and does it have to be both?
The “great Australian dream” assumes your first property is the home you live in. But rent-vesting — buying an investment property in a suburb with stronger fundamentals while renting where you want to live — is a legitimate and often smarter strategy, particularly in expensive capital cities.
There is no right answer here. But there is an answer that fits your life better than the default. Know which one that is before you start browsing.
What structure should I buy in?
Joint names? One name? A trust? The default is almost always “both names on the title” — but that isn’t always optimal for tax, liability, or future flexibility. This is worth a brief conversation with an accountant before you make any offers. See: thecontinuum.com.au/insights/do-you-need-an-accountant-property-australia
Do I actually understand all the upfront costs?
Stamp duty. Legal fees. Building and pest inspection. Lenders mortgage insurance (if your deposit is under 20%). Loan establishment fees. Moving costs. A cash buffer for initial repairs. The list adds up faster than most buyers expect. Calculate your real all-in number before you set a budget.
When You Find a Property
You’ve found something. You like it. Now is not the time to let your emotions run the due diligence process.
Why is the vendor selling?
You may not get the full truth here — but you will get information. A vendor relocating for work is in a different headspace to a vendor in financial distress or going through a separation. The motivation affects their flexibility on price, settlement terms, and conditions.
Ask the agent. Listen carefully to what they don’t say.
How long has this property been on the market, and has the asking price changed?
A property that has been listed for six weeks with two price reductions tells a very different story to one that hit the market yesterday. Long days-on-market can mean the vendor is overpriced, the property has a problem, or the market has spoken. All three are useful information.
What are the ongoing holding costs — all of them?
Council rates. Water rates. Strata or body corporate levies (if applicable). Insurance. Land tax (for investment properties above the threshold). Building maintenance on older properties. These costs affect your serviceability now and your cash flow every year you hold. Know them before you make an offer, not after.
What’s the rental history, and what’s the vacancy rate in this suburb?
If you’re buying an investment property — or even a home you might rent out one day — understanding rental demand in the area is part of the decision. A suburb with a 7% vacancy rate is a different risk profile to one sitting at 1.5%.
Has the property been flooded, or is it in a flood zone?
Flood-affected properties can be very difficult and very expensive to insure. Some are uninsurable for flood. Check the council flood map for the area, and ask directly. “Has this property experienced flooding?” is a question that protects you legally and financially.
At the Building and Pest Inspection
A building and pest inspection is not optional. And it is not a box to tick — it is a conversation.
What would you not buy about this property?
This is the single most important question you can ask your building inspector, and almost no one asks it. A professional who has just spent two hours inside a property knows things that won’t fully make it into a written report. Ask them directly. Then listen.
What will need attention in the next three to five years?
A building inspection tells you what’s wrong now. This question tells you what’s coming. Roofs. Hot water systems. Electrical panels. Retaining walls. Plumbing. These are the costs that catch buyers off guard 18 months after settlement.
Is there active pest activity, or evidence of past treatment?
The distinction matters. Active termites are a different conversation to a property that was treated a decade ago. Make sure you know which you’re dealing with.
Ask your building inspector what they would not buy about this property. Almost no one does. The answer is always worth hearing.
Ask Your Conveyancer or Solicitor
Your conveyancer or solicitor reviews the contract and handles settlement. They’re not there to tell you whether to buy the property — but there is important information locked in the contract that they can surface for you.
For help choosing between a conveyancer and solicitor, see: thecontinuum.com.au/insights/conveyancer-vs-solicitor-australia
Are there any encumbrances, caveats, easements, or covenants on this title?
An easement might mean a utility company has the right to access part of your land. A covenant might restrict what you can build. A caveat means someone else has a claim against the property. These don’t necessarily make a property unbuyable — but you need to understand them before settlement, not after.
What are the zoning rules, and does anything affect what I can do with this property?
Zoning affects whether you can subdivide, build a granny flat, run a home business, or develop in the future. If any of those things are part of your plan — even a vague future plan — check now.
What is the cooling-off period, and what are my rights if I need to exit?
In most Australian states, private treaty sales include a cooling-off period during which you can withdraw with a small penalty. Auction purchases do not. Know your state’s rules before you’re in a situation where you need them.
Are there any council notices, orders, or building works affecting this property?
Unapproved structures, outstanding council orders, or proximity to planned infrastructure works can significantly affect the value and usability of a property. Your solicitor or conveyancer can check this — but only if you ask.
Ask Your Mortgage Broker
A mortgage broker’s job is to find the right loan for your situation. These questions help you understand what you’re actually getting.
What does my actual monthly repayment look like — not the teaser rate?
Promotional interest rates expire. Comparison rates exist for a reason. Ask what your repayment will be at the revert rate, not just the rate you’ll receive in year one.
What happens to my repayments if interest rates rise by two percent?
This is the stress test question. You should know the answer before you’re committed. If the answer makes you uncomfortable, that’s useful information.
What fees am I paying, and to whom?
Application fees, valuation fees, settlement fees, ongoing account fees, annual package fees. Ask for the complete list. A broker should be able to give you a clear cost summary without hesitation.
Is this loan portable — can I take it to a different property if I move?
Loan portability isn’t always standard. If you think there’s any chance you’ll move within the fixed-rate term, it’s worth asking upfront.
If You’re Bidding at Auction
Auctions operate under different rules to private treaty sales. There is no cooling-off period. The contract is unconditional. By the time the hammer falls, you’re committed.
Have I had the building inspection and contract review done before the auction?
All pre-purchase due diligence must be completed before you bid — because if you win, there is no “subject to” period. If you’re not prepared to buy the property unconditionally, do not bid.
What is my hard ceiling, and have I decided it before I walk through the door?
Auction rooms are engineered for emotional momentum. Your ceiling needs to be set in advance, in writing, and agreed with whoever is bidding with you. Not negotiated in the room, not revised because someone else bid once more.
For more on how urgency is used as a tool in property sales: thecontinuum.com.au/insights/urgency-is-a-sales-tool
Ask Yourself — Honestly
These are the hardest questions. They’re also the most important ones.
Am I buying because this is right, or because I’m afraid of missing out?
FOMO is the most expensive decision-making framework in real estate. If the primary driver of this purchase is fear — fear of missing the market, fear of not having bought, fear of disappointing someone — that’s worth pausing on.
Can I hold this property for at least seven years through changing circumstances?
Property markets move in cycles. Most of the damage buyers do to themselves is from selling too soon because circumstances changed. Think about what your life might look like in seven to ten years — a new city, a new job, a relationship change, a health issue — and whether this purchase still makes sense in those scenarios.
What does “not right” feel like — and am I willing to act on it?
Your instincts are data. If something about a property or a transaction is making you uneasy, that feeling deserves investigation, not suppression. The question isn’t whether you’re being rational. It’s whether you’ve done enough due diligence to know what you’re actually feeling.
Frequently Asked Questions
What are the most important questions to ask when buying your first home in Australia?
The questions that matter most cover four areas: your own financial readiness (borrowing limits, structure, true upfront costs), the property itself (vendor motivation, holding costs, flood risk, building condition), the transaction (contract review, title encumbrances, cooling-off rights), and your own emotional readiness to hold the property through market cycles.
Should I get a building inspection on every property I’m serious about?
Yes. It’s not a tick-box exercise — it’s a professional assessment of one of the largest purchases you’ll ever make. Budget for it on every property you make an offer on. The cost of a building inspection is trivial compared to the cost of finding a major defect after settlement.
What does a conveyancer check in a property contract?
A conveyancer reviews the title for encumbrances, easements, covenants, and caveats. They check zoning, council orders, special conditions, and settlement terms. They ensure the contract is legally sound and flag anything that requires clarification or negotiation before you sign.
Can I negotiate after a building inspection?
For private treaty sales, yes — a building inspection that reveals significant defects gives you grounds to renegotiate price or request repairs as a condition of sale. At auction, there is no renegotiation after the hammer falls, which is why all inspections must be completed before auction day.
How do I know if I’m emotionally ready to buy a property?
The test isn’t certainty — it’s clarity. You don’t need to feel completely confident; first home buyers almost never do. But you should be buying because the numbers work, the property is sound, and it fits your life — not because you’re afraid, pressured, or trying to prove something to someone.
Related Articles
What Is a Mortgage Broker — and Why Even Bother?
Conveyancer vs Solicitor — Which Do You Need and When?
Do You Need an Accountant When Buying Property?
Urgency Is a Sales Tool. Here’s How to Recognise It.
The Moment Most Buyers Lose Control (And How to Keep It)
Why Smart People Make Bad Property Decisions
Why Property Decisions Need a Coach — Not Just a Plan
Want Someone in Your Corner for This Process?
Knowing the right questions is a start. Having someone to help you answer them — before you’re under pressure — is something else entirely.
If you’re a first home buyer who wants to feel genuinely prepared rather than just less anxious, that’s what I do.
Book a free initial call at Contact or email aimee@thecontinuum.com.au
Sources & References
The following sources are relevant to the content covered in this article.
Australian Securities & Investments Commission — MoneySmart First Home Buyers
Australian Competition & Consumer Commission — Property and Land Buying
Real Estate Institute of Australia — Auction Procedures: reia.com.au
State-based Revenue Offices — Stamp Duty Calculators: various (search “[state] stamp duty calculator”)
Australian Building Codes Board: abcb.gov.au
State-based Fair Trading offices — Cooling-off period rules: varies by state
Disclaimer
This article contains general information only and does not constitute financial, legal or tax advice. Please speak to a licensed financial advisor, solicitor or mortgage broker about your specific circumstances. Aimee Templeman is a licensed real estate agent however approaches property through the lens of learning and empowerment. She has decades of experience coaching and advising everyday Australians and executive decision makers. Book a conversation with Aimee at Contact.