How to Buy a House in Brisbane: Your 2024 Guide
So, you’ve made the decision. You’re buying a house in Brisbane — a fantastic choice! Brisbane is a beautiful city, and its residents are some of the friendliest, most welcoming people in the world. Now comes the next step: you need to actually understand how to buy a house. A thorough appreciation of the home-buying process will be crucial to ensuring the success of this huge financial decision you are about to undertake.
Are you wondering how to go about purchasing a property in Brisbane? This guide has been designed to answer some of the most common questions first home buyers have about how to buy a house.
How to Buy a House in Australia Despite a Changing Landscape
A lot has changed in recent years when it comes to understanding how to buy a house in Australia. Increased demand for housing has pushed property prices up around the country, while the Reserve Bank of Australia’s (RBA’s) decision to significantly increase the official cash rate has led to a domino effect within the lending industry. For example:
Interest Rates Have Gone Up
Between May 2022 and December 2023, the RBA increased the official cash rate by 425 basis points. As a result, the average interest rates being offered by lenders went from 2-3% up to 6+%.
Lending Criteria Has Tightened
As household debt levels continue to climb, most major lenders have responded by tightening their lending criteria. This means that the average borrower may not be able to borrow as much as they may have originally thought.
Soaring Property Prices
The median cost of an average dwelling across Australia hit $933,800 in December of 2023. While prices vary significantly across the different states and territories, most areas have seen property prices increase since 2019.
Changes to Government Grants
Fortunately, it’s not all doom and gloom. There is now a range of government subsidies and initiatives designed to help first home buyers get a foothold on the property ladder. These include the First Home Super Saver Scheme, the Help to Buy Scheme and the First Home Owner Grant.
Why Buy a House in Brisbane?
Brisbane has long been considered a city of opportunities. It’s one of Australia’s fastest growing regions, yet property prices have remained more affordable when compared with other major cities such as Sydney or Melbourne. In March 2024, the median property price in Brisbane was $817,564, while nearby Ipswich had an average house price of just $695,000. This means you won’t need to struggle with million-dollar mortgages to get on the housing ladder in Brisbane.
Brisbane is also experiencing population growth. The Brisbane City Council estimates that the city’s population will hit 1.27 million by 2031. This is important information for potential investors and homeowners, as population growth is a key indicator for predicting future property values. The more people who want to live in a particular area, the more demand there is likely to be for housing there. And the higher the housing demand, the more property values will climb.
What Are the Benefits of Buying a House in Brisbane?
Brisbane residents take great pride in the region’s amazing natural habitats, music scene, months of perfect sunshine, world-class beaches, sustainable biodiversity, affordability and premier schooling options. It is a highly desirable location for many residents arriving from interstate or overseas.
Another significant drawcard is the fact that Brisbane has been awarded the right to host the Olympics in 2032. This momentous event could potentially bring $17.61 billion worth of quantified benefits across the whole country. For Brisbane and Queensland, this means a tremendous economic boost: thousands of jobs for state locals, fast-tracked major infrastructure projects, improved public transport and a major increase in property value growth.
Buying property in the Greater Brisbane area in 2024 represents an opportune move for first home buyers. While houses are still more affordable than in other major cities, they’re likely to experience strong growth over the next decade or so.
Talk to a Mortgage Broker About How to Buy a House in Brisbane
Being a first home buyer in Brisbane is an exciting milestone, but one that can be quite daunting. Getting the right advice from the start is vitally important. You may be tempted to go straight to your local bank in search of your first home loan, particularly if you’re not 100% sure about what role a mortgage broker plays in securing a loan.
However, going straight to your bank could be a costly mistake. The best thing to do is to talk to a mortgage broker about how to buy a house in Brisbane. Using a mortgage broker can save you time, save you money and save you a lot of anxiety (in both the short-term and the long-term). An experienced mortgage broker will be able to assess the various loan products available and then provide tailored advice on which mortgage will be most suitable for your specific needs.
Buying Your First Home in Queensland: A Detailed Guide
How can working with a mortgage broker help you buy a house in QLD? To find out more, read the in-depth guide detailing how first-time home buyers can secure their first home. This guide outlines the steps that you need to take towards buying a house.
This guide also includes checklists, tips, and tricks to help make the home ownership process easier and less stressful. Also in this guide is a one-minute video that discusses the basics of first home buying and the common questions that are asked about the subject.
How to Buy a House in Queensland
As someone who is buying a house for the first time, it is natural to have some misgivings about the process. So, here are some expert tips from experienced mortgage brokers on how to get started buying your first home:
1. Get a Free Financial Health Check
Lenders will want to assess your income, expenses, debts, assets and credit score (absolutely everything about your finances). This is why it’s a good idea to start by talking to an experienced mortgage broker. They can provide you with a checklist you can work through to sort your personal finances and get everything in order.
This will ensure you’re in the best position possible to apply for a first home buyer’s loan and take the guesswork out of what is relevant or not.
2. Work Out How Much You Can Afford
The next step should be to figure out how much you can afford to borrow. Use our borrowing power calculator to get a ballpark figure on your borrowing capacity, based on your income and expenses.
You’ll also need to factor in other home-buying costs that may apply to your situation, such as stamp duty, conveyancing fees and Lenders Mortgage Insurance (LMI). Your mortgage broker can advise what grants and incentives you might be eligible for to offset some of these costs.
3. Lifestyle Check-In
It is worth considering your current lifestyle and evaluating how any upcoming changes may impact what property you are aiming to buy as your first home.
For example, ask the below questions and see if they apply to you:
- Could a job change be on the cards?
- Are you due for a promotion?
- Are you thinking of having children in the next few years?
- Is your first home your “forever home” or is this a “starter home”?
- Do you want to stay in Brisbane or are you considering moving to another area in the future?
4. Do Your Real Estate Research
This is a hard pill to swallow but trust us: your family and friends are not your best source of information when it comes to real-world property research. Instead, try to get your hands on property reports that give you up-to-date indicative price estimate guides, as well as sales and rental histories for the area you’re considering.
Speaking to local real estate agents, as well as attending open homes and auctions, will also give you an understanding of prices and how quickly things are moving in your preferred areas. This will be invaluable information once you are ready to start making offers.
5. Save Enough Money for Your Deposit
Most lenders prefer a minimum deposit of 20% for your first home loan. However, there are potentially other options available that can help you get into the property market sooner. An expert in home loans for first-time buyers will be able to provide tailored advice on how much of a deposit you’ll need, factoring in your eligibility for any available assistance schemes.
6. Get the Right Home Loan for You
You can do this by consulting with an experienced mortgage broker. Once they know how much you can afford and what your property goals are, they will do all the research to match you with the best loan product to suit your needs. They’ll consider your unique circumstances, as well as home loan interest rates, features and what lender deals are available.
It is your mortgage broker’s legal duty to work in your best interests, so you have everything to gain and nothing to lose when you work with a mortgage broker.
How Much Deposit Do I Need to Buy a House?
You might still be wondering, “How much deposit do I need to buy a house?” This is one of the most common questions that mortgage brokers get asked by first home buyers. To avoid paying Lenders Mortgage Insurance, you’ll need to have a deposit that is equal to at least 20% of the total purchase price. For example, if you wanted to buy a property worth $700,000, you’d need a deposit of $140,000 to avoid LMI.
However, there are alternative options available, including:
- Having a family member act as a guarantor on the loan.
- Qualifying for the upcoming Help to Buy Scheme.
- Applying for the First Home Loan Deposit Scheme.
To find out more about eligibility criteria, talk to a mortgage broker today.
Top Tips When Buying a House for the First Time
Being a first home buyer can feel overwhelming, particularly when you’re getting unsolicited advice thrown at you from well-meaning family and friends. To help you get started on the right track, here are our top 6 expert tips for first home buyers:
- Improve Your Credit Rating: You can do this by reducing debt and paying all your bills on time.
- Establish Your Budget: Figuring out your budget will help you to focus on properties in your price range.
- Display Job Stability: Try to avoid unnecessary job changes in the lead-up to applying.
- Maintain Control: Try to keep your emotions in check and don’t fall in love with the first house you see!
- Organise Pre-Approval: This will speed up the process once you’re ready to make an offer on a home.
- Get Expert Advice: Work with an experienced mortgage broker who specialises in helping first home buyers.
Talk to North Brisbane Home Loans About How to Buy a House
At North Brisbane Home Loans, we understand that buying your first home is one of the most important decisions you’ll ever make. That’s just one of the reasons why we take our role as first home mortgage brokers so seriously.
Our friendly team of brokers will happily help you understand everything you need to know about how to buy a house. From figuring out your deposit to making an offer, from understanding conveyancing to arranging building and pest inspections, our expert team can answer your questions and point you in the right direction. For expert financial advice tailored to first home buyers, contact our professional team of mortgage brokers today.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
