Top Mistakes First-Home Buyers Make in WA And How Building Helps You Avoid Them

Buying your first home is exciting, but it can also come with a lot of pressure and uncertainty, especially in a fast-moving market like Western Australia. At First Home Owners Centre, we speak with first-home buyers every day, so we see the same challenges pop up again and again.

The good news?

Most of these challenges can be avoided with the right information, the right support, and a home that’s built for your future.

1. The Biggest Mistake First Home Buyers Make

The biggest mistake first-home buyers make in WA is underestimating the total cost of buying an established home.

On the surface, an established home might seem “easier.” After all, it’s already there, you can walk through it, and you can see exactly what you’re getting.

But what many people don’t realise is:

– Older homes often hide expensive maintenance issues

– Renovations are almost always pricier than expected

– Energy efficiency in older homes can add to your monthly bills

– You miss out on government incentives designed specifically for new homes

– Competition from investors can push prices too high

When you build, you know the price, the product, and the quality; upfront and with no surprises.

2. Why WA House Prices Keep Rising

According to REIWA, Perth’s median house price has risen from $551,000 in 2020 to $636,000 in 2023, and more recently to around $820,000* for a four bedroom home.

*Source: Median price data last updated 28 November 2025 containing transactions for the 12 month period ending October 2025, according to Landgate/REIWA.

This increase is likely driven by:

– Low housing supply

– A growing population

– Strong local employment

– Limited new land availability in popular suburbs

3. Common Mistakes FirstHome Buyers Make And How to Avoid Them

Mistake 1: Only budgeting for the deposit

Older homes often require unexpected repairs. According to Archicentre Australia, unexpected repair costs for established homes average $20,000 – $40,000 within the first two years.

Mistake 2: Thinking established homes are cheaper

The real cost includes renovations, updates, energy bills and ongoing maintenance.

Mistake 3: Getting caught in bidding wars

Perth’s tight market often forces buyers to stretch beyond their budget.

Mistake 4: Missing out on government incentives

Many first-home buyers don’t realise that incentives like the First Home Owner Grant (FHOG) are only available for new builds.

Mistake 5: Underestimating long-term costs

Older homes aren’t typically more expensive now — they’re more expensive later.

4. Building vs Buying in WA

Upfront price clarity: Buying established = unpredictable. Building = fixed pricing.

Competition: Buying = high competition. Building = low.

Maintenance: Buying = high. Building = low.

Energy Efficiency: Buying = often poor. Building = strong.

Government Incentives: Buying = limited. Building = strong (FHOG + more government incentives).

Customisation: Buying = none (or a very expensive renovation). Building = full.

5. Why Building Makes Sense in WA Right Now

Building gives you:

– Price certainty

– The ability to customise your home

– Government incentives

– Modern efficiency

– Confidence in what you’re buying

6. Our Mission at First Home Owners Centre

At First Home Owners Centre, our mission is simple:

To take the stress, confusion and uncertainty out of building your first home.

At First Home Owners Centre, we help with:

– Understanding your budget

– Land selection

– Home design

– Finance options

– Grants and incentives

– A smooth and supported build journey