Beginner's Guide to First Home Buyer Statistics

If you're buying your first home in South Perth, the statistics tell you where you fit in a changing market and what support is actually available to you.

How Many First Home Buyers Use Government Support Schemes

Around 40% of first home buyers nationally use the Australian Government 5% Deposit Scheme, while Western Australian stamp duty concessions reach roughly 60% of eligible buyers in metropolitan areas. In South Perth, where the median sits well within the $850,000 price cap for the 5% Deposit Scheme, most buyers qualify for both federal and state support. The real question isn't whether you're eligible, it's whether the deposit you've saved matches the property type you're targeting.

Consider a buyer purchasing a unit near Angelo Street with a 5% deposit. If the property is valued at $650,000, they need $32,500 for the deposit. The scheme covers the gap between 5% and 20%, meaning Housing Australia guarantees the remaining $97,500. No LMI is charged. That same buyer would also qualify for the Western Australian First Home Owner Rate of duty, which removes stamp duty entirely on homes valued up to $600,000 and applies a concessional rate up to $800,000. At $650,000, the concessional rate is approximately $8,075, compared to standard duty of around $23,855.

What First Home Buyers Actually Save With Stamp Duty Concessions

Stamp duty concessions in Western Australia save eligible buyers between $16,000 and $30,000 depending on the purchase price. For a home valued at $700,000 in South Perth, the concessional rate under the FHOR is approximately $16,150, compared to standard duty of around $26,765. That's a saving of over $10,600, which can be redirected toward furniture, legal fees, or building and pest inspections.

The concession applies to both new and established homes. South Perth's housing stock includes a mix of riverfront apartments, character homes on Manning Road, and newer townhouses near the Kwinana Freeway. All of these property types are eligible, provided the buyer meets residency requirements and the property value sits at or below $800,000. Above that threshold, standard rates apply and the concession is not available.

First Home Buyer Deposit Patterns in Western Australia

The majority of first home buyers in Western Australia enter the market with deposits between 5% and 10%. A smaller proportion, around 15%, have saved 20% or more and avoid the need for government-backed deposit schemes altogether. For buyers targeting South Perth, where proximity to the Perth CBD and the Swan River pushes values higher than outer suburbs, the 5% deposit option is used more frequently than the state average.

Deposit size affects borrowing power, interest rate pricing, and monthly repayment amounts. A buyer with a 10% deposit may access slightly sharper interest rate pricing from certain lenders compared to a 5% deposit, though the difference is often less than 0.15% per annum. Over a 30-year loan term, that variance can add up, but it's not always enough to justify delaying a purchase to save the additional 5% if property values are rising faster than savings.

Offset accounts and redraw facilities also come into play. Buyers entering with a smaller deposit often prioritise loan features that let them park extra savings against the loan balance once they've settled. In our experience, buyers who start with 5% and maintain disciplined savings habits often build equity faster than those who delay their purchase to reach 10%.

How the First Home Owner Grant Works in Western Australia

The FHOG in Western Australia is $10,000 and applies only to new homes. It does not apply to established homes. For homes south of the 26th parallel, which includes all of South Perth, the property value cap is $800,000. North of the 26th parallel, the cap is $1,000,000.

New homes include house and land packages, newly constructed dwellings, and off-the-plan apartments that have not been previously occupied. A unit purchased off-the-plan in South Perth's new developments near Labouchere Road would qualify, provided it meets the value cap and occupancy requirements. The buyer must live in the property as their principal place of residence for at least six continuous months within 12 months of completion.

The grant is paid after settlement and is typically claimed through your lender during the home loan application process. It cannot be used as part of your deposit for loan approval purposes, but it can be directed toward settlement costs or applied to the loan balance after settlement.

First Home Buyer Age and Income Statistics

The average age of a first home buyer in Australia is between 32 and 34 years. In Western Australia, buyers entering the market in inner suburbs like South Perth tend to be slightly older, often in their mid-30s, with higher household incomes and more stable employment histories. Single buyers make up roughly 25% of all first home purchases, with the remainder being couples or co-purchasers.

Income affects borrowing capacity more than deposit size in most cases. A buyer earning $85,000 per annum with a 10% deposit will borrow less than a buyer earning $110,000 with a 5% deposit, even though the second buyer has a smaller deposit. Lenders assess your income, existing debts, living expenses, and credit history to determine how much they're willing to lend. Your deposit determines whether you need LMI or a government guarantee, but it doesn't directly increase your borrowing capacity.

Why Timing Matters More Than Waiting for Perfection

First home buyers who wait for a 20% deposit to avoid LMI or government schemes often lose more in rising property values than they save in loan costs. A property in South Perth valued at $700,000 today could be worth $735,000 in 18 months if the market rises by 5%. That $35,000 increase wipes out the benefit of avoiding a scheme that charges no LMI and costs nothing to access.

The Australian Government 5% Deposit Scheme has no annual place limits, no income caps, and no expiry date currently legislated. Western Australian stamp duty concessions apply indefinitely under current settings. Waiting for a scheme to become more generous or for property values to drop is not a reliable strategy when you're ready to buy, have stable income, and know where you want to live.

If you're ready to move forward, the numbers are clearer than they've been in years. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions