First home buyers states

State-by-state profiling of First Home Buyers

Rates and Fees verified correct on October 21st, 2016

Take a look at’s first home buyer insights and find out what the first home buyers from your state are thinking.

Buying a home for the first time has long been part of the Australian dream. Unfortunately in recent years the uncertain financial climate has seen first home buyer numbers fluctuate, with data released from the Australian Bureau of Statistics in November 2013 revealing a noticeable slump in the first home buyer property market.

First home buyer stats

A recent survey conducted by leading global research provider pureprofile surveyed more than 1,100 respondents across Australia. The survey found that first home buyers in WA were by far the most determined to purchase their first property, with 90% making it their New Years’ Resolution for 2014. This is compared to 77% of first home buyers in South Australia, 64% in Victoria, 60% in New South Wales and 54% in Queensland.

Western Australians have more first home buyers than other states in proportion to all home loans financed. For instance, WA first home buyers made up 23% of all home loans financed in August. It was also the second ­highest number of first home buyer loans in the country, with 1,745 in WA, closely following Victoria with 2,105 in August.

What does this mean for you?

The results indicate that first home buyers outside of Western Australia may face even tougher competition. It’s already difficult for many first home buyers to enter the property market because they are generally earning less money, have smaller deposits and competing against refinancers and property investors. On top of this, 63% of borrowers would consider purchasing property interstate. With such fierce determination from Western Australian first home buyers, those in other states now have to face the competition from their interstate rivals.

More results

The annual survey also found that Western Australians are the least accepting of older ‘kids’ staying at home with their parents. In WA only 14% of respondents thought it was okay to still live at home if you’re over 28. This is compared to the rest of Australia, one in five of whom think it’s perfectly fine. Despite this, of those still living at home, 70% of first home buyers in WA are living at home to save for their deposit.

Queensland and South Australian first home buyers are finding it the hardest to save enough money for a deposit, with 62% in each state saying this is the main reason why they haven’t yet bought a home. QLD first home buyers are the most independent, as they are the least likely to be living at home while saving for a deposit (31%). Almost one in three (31%) Queenslanders think 21 is the limit to be still living at home, while 76% of the rest of Australia think it’s okay to still live at home after turning 21.

60% of first home buyers in NSW plan to buy an investment property over a residential one for their first home, compared to the other states. QLD first home buyers are more willing to purchase property interstate (69%) than first home buyers in other states.

First home buyer profiles

NSW first home buyers: Ready investors but not above mooching

New South Wales first home buyers are living at home longer than any other state, with 16% believing it’s okay to live with your parents over the age of 30. About half are living at home to save for a deposit. An interesting statistic is that buyers in NSW are more likely to make their first purchase an investment property (60%), particularly Gen Y with 64% wanting to invest in property. 71% are also looking for long­ term capital growth. Two in three NSW buyers purchase property out of the state, obviously trying to avoid some of the most expensive property prices in the country. But the prices have not dampened their spirits, with 79% believing now is a great time to make their purchase.

VIC first home buyers: Looking forward but using more traditional methods

89% of Victorian first homebuyers are planning to invest in property to set up their future and about two in three (62%) want long­ term capital growth. Victorians appear to be more traditional property researchers, with more first home buyers relying on newspaper and magazines to learn about the market. This is compared to internet and comparison websites relied on in other states. Like their neighbouring New South Welshmen, Victorians are also optimistic about buying, with 72% thinking now is a good time to enter the property market.

QLD first home buyers: Parents help them to be daring investors

First home buyers from the Sunshine State are the most daring property investors, with 69% considering to purchase interstate. 55% are looking for long ­term capital growth and the majority (82%) want to set themselves up for the future. Half of first home buyers from QLD head out of the nest at 25 and receive more help by their parents than any other state. 31% will be given money to help with their deposit or their parents will act as guarantor.

SA first home buyers: Highest optimism and savviest bunch

South Australians are the most savvy first home buyers in the country. 92% respondents used the internet and comparison websites to research the home loan market and they are also more likely to get advice from a mortgage broker. They are optimistic about their first home purchase, with 85% believing now is a good time to enter the property market. However, they are the most concerned about lenders not passing on rate cuts. South Australian first home buyers who are looking to invest in property are more likely to go with a riskier or short­ term investment than any other state, as 67% want good rental yield as opposed to long­ term capital growth.

WA first home buyers: Most determined buyers

Western Australian first home buyers are the most determined state in the country, with 90% making it their New Years’ Resolution to buy a property in 2014. WA first home buyers are more inclined to get home loan advice from family and friends as well as listen to the radio and watch television to gain market insights. They are serious about investing in property, with half of all WA first home buyers planning to invest in property. Out of this number, 80% are looking for long­ term capital growth. 60% would also consider purchasing interstate.

No matter what state you’re from, the first step for any first home buyer needs to be research. You need to understand the market, understand properties, understand lenders and understand loans. You can start your first home loan journey here with us at by comparing first home buyer home loans using the table below. You can apply with a lender for pre-approval so you can prepare a budget that suits your financial needs.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at Talk to him to find out more about home loans.

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