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2022 and 2023 didn't bring much joy nor opportunity for first-home buyers, but with RBA interest rates expected to stabilise across the first half of 2024 and even decrease in the second half of 2024, now is the perfect time for house hunters to start scrolling through listings in their favourite suburbs.

But what do you need to keep in mind when looking to purchase your first home?

We'll be answering just that question today by outlining some tips to kickstart your property purchasing plans in 2024.

Read on to learn more about how you can make sure you're financially ready to purchase your first home this calendar year.

Don't forget to factor in the hidden costs of home ownership

Although property prices may be enticingly low, first-home buyers should still keep in mind that there's more to the costs of home ownership than managing a home loan. You'll also need to factor the costs of home and contents insurance, home repairs, council rates, strata or body corp fees, and the estimated costs of your utilities or household bills when determining what your buyer's budget is.

The last thing any first-home buyer wants is to find themselves having to take out a personal loan just to cover the costs of managing their new home. If you don't ensure that you have adequate savings after you pay your 20 per cent deposit, however, then you may find yourself falling into more debt than you've bargained for.

It's also important for first-home buyers to keep in mind that interest rates are still higher than they have been in recent years, with current rates more or less mirroring the same economic conditions we experienced following the 2007-2008 GFC. This is yet another reason why financial considerations must still be paramount when looking to buy property in 2024. We'll delve deeper into interest rates below.

Don't wait for interest rate cuts to make your move

With the RBA announcing that they'll only be meeting up every 3 months rather than every month, a lot of homeowners across Australia are expecting a highly anticipated interest rate cut for what's basically the first time since interest rates started to climb back in April 2022. After almost two years of steadily rising prices and a climbing cost of living, relief is thankfully just around the corner - and by 'around the corner' what we really mean is approximately 6 months away.

But if you're looking to buy a home now or at least in the FY24 fiscal year, then it's best not to delay. Why? Because once the rates drop, Australia's real estate market is likely to see an influx of buyers. For first-home buyers, this additional competition may deter you from being able to get your foot in the door for 1- or 2-bedroom properties that can be purchased with smaller home loans. If you don't want to lose out to property investors, then it may be better to act while the competition's low and see if you can snag yourself up a good deal before property prices begin to rise again.

Simply put, remember that whilst it may currently be a buyer's market, decreased interest rates will inevitably bring a change in the tide. So strike while the iron is hot! You might find that braving a few extra months of high interest rates makes more economic sense than waiting to see just how quickly house prices climb at the tail end of 2024.

Take advantage of government schemes for first-home buyers

On the topic of considering your finances, it can feel disheartening the first time you really sit down and look over the structure of home loans. In some cases, it's beneficial to save up for as long as you can before taking on your first mortgage, just because a higher deposit inevitably means a reduced loan, which means lower monthly repayments. But waiting too long may run the risk of missing out on opportunities where the market tips in your favour. In this sense, it really is a fine balance between saving up just enough and ensuring that your timing is precise.

But what if you haven't saved up as much as you need but are still looking to take advantage of ideal economic conditions further in the year? Well unsurprisingly, the majority of first-home buyers are actually in this camp, as are homeowners who are looking to leverage their equity to purchase additional investment properties. Thankfully, first-home buyers do have an edge on these prospective investors: tailored government schemes.

Alongside the Victorian Homebuyer Fund for Victorians and the First Home Buyers Assistance Scheme in NSW, there's also the First Home Owner Grant (FHOG) and the First Home Guarantee (FHBG), which you can read up on here. We highly encourage first homeowners to discuss these schemes with their mortgage brokers and ensure that they have everything they need to put together their applications to these schemes. This government assistance can help first-home buyers retain their savings and still be able to get in on the ground floor of Australia's consistently thriving property market.

Freshen up on your market research for 2024

In the past two years that we've been emerging from the COVID-19 pandemic and simultaneously tackling rising interest rates, Australia's suburb demographics have naturally been subject to great change. Our rapidly developing cities have resulted in prices rising disproportionately from suburb to suburb - especially in Sydney and Melbourne in particular.

With that in mind, it's imperative that prospective first-home buyers refresh their market research and refamiliarise themselves with suburb demographics for all the areas that they're looking to buy into. Making sure that your information is current can help you make better educated decisions when it comes time to bid at an auction or place an offer on a home listed for private sale.

It also pays to attend auctions and open houses whenever you can, and to ask your local real estate agents plenty of questions. You'd be surprised just how much you can learn by watching what other prospective buyers are looking out for or even just overhearing the questions they ask themselves.

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Entering the property market with a bang naturally requires a lot of strenuous research and financial planning. But if you're willing to put in your hard yards now, you can set yourself up with a pretty comfortable investment that can help you start growing your own equity, and that makes it all worthwhile at the end of the day.

So stick with it! Keep reading industry reports, watching your favourite finance gurus on social media, and applying for any and all government schemes and concessions that you may be eligible for. So long as you stay resourceful and adaptable, you should be able to see out 2024 with your first investment property under your belt!