Buying your first home is an exciting milestone, but in Canberra, it’s not without its challenges. With rising property prices, high interest rates, and stiff competition, first-home buyers are up against significant hurdles.

The Challenge of Saving for a Deposit

According to Domain’s First Home Buyer Report 2025, a couple in Canberra aged 25 to 34 takes an average of five years and seven months to save for a 20% deposit. 

Dr. Nicola Powell, Domain’s chief of research and economics, explains, “This becomes even more daunting when home prices remain high relative to wages, compounded by a prolonged period of elevated interest rates and rising living expenses.”

Over the last five years, house prices across Australia have skyrocketed—entry-level houses are up 58%, while unit prices have increased by 27%. Inflation has risen by 20%, but wages have lagged behind at just 15%. This means that first-home buyers in Canberra are spending longer than ever just trying to get a foot in the door.

Canberra’s House and Unit Prices: What You Need to Know

House and Unit Prices in Canberra

• Entry-level house median price: $815,000 (+3.2% from last year, +40% in five years)
• Entry-level apartment median price: $462,000 (-1.7% from last year, +18.6% in five years)
• Time to save for a house deposit: 5 years, 7 months

Saving for a house deposit takes over five years, while for an apartment, it takes an average of three years and three months—a shorter timeline but still a big commitment. Despite the price difference, many first-home buyers still prefer houses over apartments.

Houses Are Still in High Demand

Jonny Warren from Jonny Warren Properties sees high demand for standalone homes.

“Standalone houses are in really hot demand at the moment,” Jonny says. “Over the past six weeks, I have seen so many first-home buyers trying to get into those sorts of homes. Every three-bedroom house we have had recently has had hot competition between first-home buyers.”

Most buyers are looking at areas like Tuggeranong and Belconnen, targeting homes priced at $750,000 or less—a price range that aligns with the Australian Government’s Home Guarantee Scheme.

The Reality of Mortgage Stress

While many first-home buyers are keen to secure a house, affordability remains a challenge. 

According to Domain: 

• House mortgage repayments: 46.7% of income (above 30% mortgage stress level)
• Apartment mortgage repayments: 26.5% of income (below mortgage stress level)

However, relief may be on the horizon. Powell notes that slower market conditions, potential price stabilisation, and expected interest rate cuts this year could offer some financial breathing room.

“However, the financial recovery will be gradual, compounded by ongoing challenges such as housing undersupply,” she adds. “Ensuring adequate and affordable housing is essential to shaping a more sustainable future for Australia’s housing market.”

Need Help Getting Started?

While buying a first home in Canberra isn’t easy, it’s still possible with careful planning, realistic budgeting, and leveraging government incentives. The competition is tough, but opportunities do exist—especially for those who are willing to explore apartments or emerging suburbs.

If you’re looking to break into the Canberra property market and need expert guidance, The Jonny Warren Properties team is here to help. Get in touch today and let’s find your dream home together.

📞 0438 867 822
📩 jonny@jonnywarren.com.au
💻 www.jonnywarren.com.au

Source: ‘Competing with a lot of deep pockets’: the reality of buying your first home in Canberra

For many first-time home buyers, the focus is on saving for a deposit and securing a home loan. While those are essential steps, there’s a long list of additional expenses that can catch first-home buyers off guard. 

Benny Power, or as we call him ‘Benny The Buyers Agent,’ of Jonny Warren Buyers Agency, recently joined Cam and Renee on the Real Estate Show on amplifyCBR to discuss these often-overlooked costs and how to prepare for them.

Unexpected Expenses Every First Home Buyer Should Know

A wide range of costs can come up before, during, and after the purchase, making careful planning a necessity. Benny highlighted several areas where unexpected expenses can arise:

• Insurance Costs – Home and contents insurance are non-negotiable. Lenders often require home insurance before settlement, and having contents insurance protects belongings from unforeseen incidents like theft, fire, or natural disasters.

   

• Building and Pest Inspections – Professional inspections can reveal potential issues such as structural damage or pest infestations. While this may seem like an optional expense, skipping it could lead to much higher costs if hidden defects become apparent later.

   

• Solicitor and Legal Fees – The legal aspect of purchasing a home involves contracts, title searches, and settlement procedures.

   

• Utility Connections – Gas, electricity, water, and internet services often require connection fees. In some cases, new homeowners may also have to pay bond deposits for these utilities.

   

• Removalist Fees – Moving into a new home means transporting furniture and belongings. Hiring professional movers or renting a truck, these costs add up, especially for those relocating long distances.

   

• Property Valuation Fees – Lenders may require a property valuation to ensure they are lending responsibly. This cost is typically borne by the buyer and can vary depending on the lender’s policies.

   

• Strata Fees – Buyers purchasing apartments or townhouses under a body corporate must pay strata fees. These fees contribute to the maintenance of shared areas, building insurance, and other communal expenses.

   

• Immediate Repairs and Improvements – Even newly purchased homes may need adjustments before moving in. Repainting, new flooring, plumbing upgrades, or even simple landscaping can be surprisingly costly.

   

• Stamp Duty (if applicable) – While first-home buyer concessions may apply, eligibility criteria differ between states and territories. Understanding these rules beforehand can prevent unexpected costs at settlement.

   

• Council Rates – Regardless of whether you’re purchasing a unit, townhouse, or freestanding home, council rates are an ongoing expense. These fees go toward local infrastructure, waste management, and community services and can vary depending on a suburb.

   

The Best Way to Manage These Costs

A well-prepared budget makes all the difference. Benny stressed the importance of setting up a clear financial plan that includes all potential extra costs before finalising a purchase. 

By researching costs, requesting quotes, and allocating funds for these expenses in advance, buyers can avoid financial strain once they move in.

Failing to plan ahead can lead to financial pressure, forcing homeowners to stretch their budget thin or dip into emergency funds for expenses they didn’t anticipate.

Benny’s Personal Experience

Even buyers agents aren’t immune to the challenges of unexpected costs. Benny shared his own experience of moving into his first home and facing an unexpectedly high gas bill.

“I remember moving in and getting hit with the largest gas bill. The following year, I was still hesitant to turn the heater on, living in a tracksuit just to save money,” he recalled. “Eventually, I adjusted my budget to account for those extra costs.”

Heating and cooling costs can have a significant impact on monthly expenses, and many first-home buyers overlook how much energy bills fluctuate with seasonal changes. Factoring in these costs from the beginning allows for better financial management.

The Best Advice for First-Home Buyers

Benny’s top recommendation for first-home buyers is to do thorough research, seek advice from reliable sources, and prepare for every aspect of homeownership—not just the purchase price.

“Speak with people you trust, do your research, and consider working with a buyer’s agent. We guide you through the entire process and help protect you from costly mistakes,” he said.

Surrounding yourself with knowledgeable professionals and experienced homeowners ensures informed decision-making and helps avoid unnecessary financial surprises.

Buying a home is a major milestone, and while it comes with challenges, understanding the hidden costs and planning for them in advance makes the journey far smoother. Learning from the experiences of others can provide valuable insights, saving first-home buyers from costly surprises.

READY TO START THE NEW CHAPTER IN YOUR STORY THIS 2025?

Buying a home comes with challenges, but having the right support makes all the difference. At Jonny Warren Buyers Agency, we simplify the process, helping you make confident decisions while avoiding costly mistakes. 

Get in touch with our team today and take the next step towards owning your ideal home with less stress and more certainty.

📞 0438 867 822
📩 benny@jonnywarren.com.au
💻 www.jonnywarren.com.au/buyers-agency/