Navigating 2025: Key Opportunities for First Home Buyers and Investors

The property market is entering 2025 with renewed energy, driven by government initiatives, developer incentives, and strong buyer demand. For first home buyers and investors alike, this year is shaping up to be one of opportunity. Here’s a breakdown of the latest developments and what they mean for you.

First Home Buyer 5% Deposit Scheme Gains Momentum

Launched ahead of schedule in October 2024, the First Home Buyer 5% Deposit Scheme has already seen strong uptake. This initiative is helping more Australians step onto the property ladder by lowering entry barriers and improving access to finance. With affordability front of mind for many, the scheme continues to be one of the most impactful pathways for first home buyers.

Exclusive Developer Incentives

For those able to access private boardroom sessions, developers are offering limited-time incentives. These include:

• Vendor finance options starting from just 4% interest

• Cash rebates of up to 5%

These deals remain scarce and highly exclusive, but for buyers who qualify, they provide significant advantages in offsetting upfront costs.

Market Outlook: Rising Prices and Strengthening Demand

The property market closed 2024 on a high, recording a 0.7% price rise in the final quarter. Early 2025 is expected to bring further momentum, supported by the likelihood of additional interest rate cuts. With affordability improving, demand is strengthening, and buyers who move early may benefit before further price increases set in.

First Home Guarantee Expands

The First Home Guarantee program has undergone major changes designed to broaden its reach:

• Expanded price caps across New South Wales

• Removal of income limits for eligible applicants

These updates mean more first home buyers can take advantage of the scheme, particularly in competitive metropolitan and regional markets.

SMSFs on the Rise

Self-Managed Super Funds (SMSFs) are gaining popularity as investors search for tax-efficient and leveraged property strategies. The most attractive opportunities currently sit in:

• Residential properties priced under $1 million

• Select commercial assets with strong yield potential

For long-term wealth creation, SMSFs remain an appealing pathway for sophisticated investors looking to diversify their portfolios.

Final Call on Lender Rebates

With ANZ’s $3,000 rebate ending in late 2024, buyers are increasingly seeking alternative lenders still offering limited incentives into 2025. While options are narrowing, a handful of institutions continue to provide cash-back opportunities, making now an important time for buyers to compare lenders before incentives disappear entirely.

Key Takeaway

The beginning of 2025 is marked by expanded opportunities for first home buyers and investors. With government support schemes, exclusive developer deals, and favorable lending conditions, now is a critical time to explore your options. Acting early could mean securing better incentives, lower borrowing costs, and a stronger position in a rising market.