For many Australians, buying a first home isn’t just a milestone – it’s the beginning of a life lived on your terms. Whether it’s starting a family, creating stability or finally having a space that’s yours, your home becomes the cornerstone of your lifestyle by design.
But your home also plays another crucial role: it becomes your financial nest egg.
And in a property market filled with glossy brochures, first-home buyer grants, and fast-talking developers, it’s never been more important to choose that nest egg wisely.
Because when done right, your first home doesn’t just provide comfort, it builds security. It gives you financial flexibility, opens future choices, and underpins the life you want to lead. So, what should first-home buyers really be buying?
It’s not just a home, it’s an investment-grade asset
This is where many buyers go wrong. They focus solely on what feels good now – open-plan kitchens, walk-in robes, and shiny finishes – without considering how that property will serve them in 10, 15 or 20 years’ time.
But smart first-home buyers use a different lens. They look for investment-grade assets – properties that are more likely to grow in value over time.
Now, let’s be clear. We’re not saying your first home needs to become an investment property, but it should perform like one. That’s what turns a home into a true financial springboard. And that’s where these three filters come in.
The 3 filters for finding your first home (that will build wealth too)
Here’s the truth: not all properties are created equal. Some grow in value. Others don’t. So, how do you know what to buy?
That’s why, when we assess a property’s long-term potential, we use three critical filters. These apply whether you’re purchasing a freestanding home or a townhouse, and they’re essential for any buyer wanting their property to grow in value over time.
1. Scarcity: Will people still want this in 10 years?
A property that’s hard to replicate is more likely to hold its value and grow. Scarcity can come from location, character, or the limited supply of homes like it. Think tightly held pockets, architectural charm, or a home on a quiet street close to everything.
2. Owner-occupier appeal: Would you want to live there, even if you didn’t own it?
Homes that appeal emotionally – logical layouts, light-filled rooms, good access to amenities – are always in demand. That demand supports capital growth, even when the market slows. It’s the ‘I could see myself living here’ factor that matters.
3. Investment worthiness: Does it have the fundamentals to grow?
You don’t need to treat your home like an investment property, but you do want it to perform like a good asset. Look for:
- A track record of capital growth in the area
- High land-to-asset ratio (more value in land, less in the building)
- Signs of future growth: infrastructure, gentrification, limited supply.
The properties that tick all three boxes? They’re your golden goose.
Learn more about investing in the book How to Retire on $3,000 a Week by Bryce Holdaway and Ben Kingsley.
Why new builds rarely stack up against established homes
Grants, stamp duty discounts and builder incentives make new builds look attractive but beware the shine.
Most new properties fail the scarcity test. They’re built in bulk, located in emerging suburbs with little infrastructure, and priced to include developer margins.
While they may feel fresh, they rarely deliver strong long-term value. Here’s why:
- Oversupply weakens future demand
- You can’t back-test performance
- You’re paying more for the fixtures than the fundamentals
- The land component is often too small to drive growth.
Instead, focus on established homes in well-connected areas with proven history. They’re often older, but they have the track record and land value to back them up.
House or unit? Here’s how to make the right call
If your budget stretches to a house with decent land content, go for it. You’ll typically see stronger growth, control, and flexibility over time. But if a house isn’t within reach, you can still buy strategically.
The key is to avoid high-density apartments and instead look for:
- Boutique units or villas in low-density blocks
- Prime locations with strong lifestyle appeal
- Character or uniqueness that makes it stand out from the crowd.
The rule? If it’s cheap and there’s hundreds of them, don’t touch it. Make sure the home is one you’d be happy to live in for the long term, and that others will be too.
Final word: This isn’t just a purchase, it’s a plan
Your first home is more than bricks and mortar; it’s the foundation of your financial journey. A strong-performing home provides security, growth, and the confidence to build the life you want.
So, here’s our best rule of thumb: Prioritise land content, and choose properties with fewer dwellings on the same land lot to maximise scarcity and value.
And while no first home will be perfect, if you buy through the right lens – scarcity, appeal, and financial fundamentals – you’ll walk away with more than just a set of keys. You’ll own a real nest egg – one that grows in value, supports your goals, and sets you up for the life you want to live.
