Buyers’ agent outlines risks and rewards for first-time purchasers in a rapidly moving market
A Brisbane buyers’ agent has cautioned first-home buyers against focusing solely on headline prices as the city’s unit market records sharp gains, with implications for borrowing strategies and long-term portfolio planning.
The average price of an entry-level unit in Brisbane has risen to $660,000, the second-highest among Australia’s capital cities, according to new data from property listing platform Domain. This marks an 80.8% price increase over the past five years.
Amelia Reddiex (pictured top), co-founder of Tailored Buyers Agents, said rapid price growth in the local apartment sector, combined with higher interest rates and stronger investor demand, was testing the discipline of new entrants to the market.
“‘Bargain’ properties rarely deliver what they promise,” she said. “When markets run hot, it’s easy to make the wrong compromises in order to secure a property at what feels like a bargain price, but a bargain property is rarely cheap.
“Buying a small, low-quality unit in a poor location, such as on a main road or in an area with limited amenities, will come back to bite you. Now, more than ever, is the time to focus on the fundamentals.”
From a lending perspective, she noted that the combination of rate rises, the near-doubling of some Brisbane unit values and greater competition from investors was reshaping what first-home buyers could viably borrow and service, but had not removed opportunity.
“Yes, you need to make compromises, but the right compromises will not only get you onto the property ladder, they will also kick-start your portfolio toward a more secure future,” Reddiex said.
She added that, in current conditions, brokers and lenders working with first-home buyers should emphasise asset selection, cash flow resilience and scope for future equity rather than simply maximising borrowing capacity.
“You simply cannot out-save the market,” Reddiex pointed out. “Every month you delay, prices are moving.”
Domain recently reported that, for the first time on record, Brisbane has overtaken Sydney as the city where it now takes the longest time to save a deposit for an entry-level unit.
Source: Domain
Meanwhile, Reddiex outlined several practical principles she believes remain relevant for first-home buyers and their advisers despite the pace of recent gains.
First, she stressed that location should remain central to any acquisition strategy, even when budgets are tight. While prime postcodes may be out of reach for many first-timers, nearby “bridesmaid” suburbs with access to transport, employment and services can provide a lower price point while maintaining key fundamentals.
Second, she pointed to cosmetic renovation as a way for first-home buyers to build equity in a rising but competitive market, provided they understand costs, lending constraints and timelines.
“Units requiring a freshen-up, like a new kitchen, bathroom, paint, or flooring, can deliver outstanding gains,” Reddiex said. “Manufacturing equity through upgrades is one of the most effective strategies for first-time buyers in a high-priced market.”
Third, she highlighted the role of lower-cost, older walk-up complexes in supporting serviceability and holding costs, an increasingly important consideration for borrowers facing higher repayments and stricter assessment rates.
Reddiex also noted that stock type remained a key factor for exit strategy and refinancing options. She warned that one-bedroom units carried particular risks in the Brisbane context.
“Resale of one-bedroom units is notoriously challenging in Brisbane,” she said. “With more Australians working from home and demanding storage and flexibility, one-bedders are volatile assets that tend to underperform, especially in softer market conditions.”
She said mortgage brokers should ensure clients understand how dwelling characteristics may affect valuation, rentability and future borrowing power.
For clients unable to purchase in their preferred lifestyle locations but with stable incomes, Reddiex said rent-vesting was gaining traction as a strategy that brokers and planners were increasingly discussing with first-home buyers.
“If you cannot afford a quality asset where you want to live, consider renting in your preferred location and purchasing a well-positioned investment property elsewhere,” she suggested. “It’s not a one-size-fits-all approach, but for many buyers it is the smarter path to building long-term wealth.”
“Your first home doesn’t need to be your dream home but should be a smart first step on the way to it.”
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