Why Almost Half Regret Their First Property Purchase

Buying your first home is often seen as a major life milestone. But for nearly half of Australia’s first-time buyers, that dream quickly turns into regret. According to recent findings highlighted by Smart Property Investment, 44% of first property buyers admit they regret aspects of their initial investment. From overpaying and unexpected costs to poor location choices, many new homeowners quickly realise their dream home isn’t all it seemed to be.

Why Are So Many First-Time Buyers Regretting Their Purchase?

Buying a house for the first time is exciting, but the reality can be more sobering. Among the top reasons cited by buyers were:

Underestimating hidden costs — such as maintenance, strata fees, taxes, and unexpected renovations.
Location-related dissatisfaction — including poor transport links, limited amenities, and safety concerns.
Compromising too much due to budget stretch — buyers often settle for smaller or older homes that don’t meet their lifestyle needs.
Lack of professional advice — a risky move when dealing with the biggest financial commitment of your life.

The data, derived from a survey conducted by Finder, indicates that emotional decision-making, driven by FOMO (fear of missing out) and a highly competitive market, can result in unsatisfactory purchases. Particularly in the wake of record interest rate hikes, many new homeowners find themselves financially and emotionally stretched.

Key Demographics Affected

The regret isn’t spread evenly across all buyer demographics. Finder’s research shows that:

Millennials were the most regretful, with 61% expressing buyer’s remorse.
Women were slightly more likely to experience regret (45%) compared to men (42%).

This could be attributed to younger buyers entering the market with less financial security and experience, making them more prone to rushed decisions or underinformed purchases.

How to Avoid First Home Buyer Regret

Regret doesn’t have to come with the territory of buying your first home. Here are a few key strategies to avoid common pitfalls:

1. Get Pre-Purchase Professional Advice

Engage a qualified property adviser or buyer’s agent who can provide an unbiased market assessment before you commit. Professionals help you balance emotion with information and can prevent you from overpaying.

Services like REBAA (Real Estate Buyers Agents Association of Australia) offer access to vetted experts who work in the buyer’s best interest.

2. Understand All Costs Involved

It’s not just about your home loan. Make sure you calculate ongoing maintenance, homeowners’ insurance, strata fees, and unexpected repairs. Use a comprehensive cost calculator like Moneysmart’s mortgage calculator to plan ahead.

3. Don’t Rush the Process

FOMO is real in a hot market, but urgency often leads to uninformed decisions. Take your time to research suburbs, inspect multiple properties, and compare pricing trends before putting in an offer.

4. Prioritise Location Over Aesthetics

You can update a kitchen, but you can’t change your suburb. Accessibility, proximity to public transport, and neighborhood safety are critical long-term considerations.

5. Build a Buffer

Overextending your budget leaves no room for financial surprises or future interest rate increases. A recommended minimum buffer is 20% of your total property expenses.

Final Thoughts

The road to buying your first home may be paved with excitement, but without due diligence, it can lead to regret. With nearly half of first-time buyers wishing they had done things differently, this data serves as a crucial reminder to plan thoughtfully, seek expert guidance, and keep long-term goals top of mind.

If you’re thinking about entering the market as a first-time homebuyer, take the time to plan your purchase strategically. There’s no substitute for informed decision-making when it comes to one of the biggest investments of your life.