The bottom line: First home buyers are flooding back into the Sydney market right now, and if you’re thinking of selling an investment property under $1.5m, understanding what they want could mean the difference between a quick sale and months on the market.
Why First Home Buyers Are Back in Force
If you’ve been considering selling your investment property, you’ve probably noticed something: open inspections are suddenly busier, and there’s a new energy in the market. First home buyers are back, and they’re serious.
Three major factors are driving this surge:
The Australian Government 5% Deposit Scheme kicked off on 1 October 2025 (brought forward from January 2026), removing income limits and increasing price caps. This means eligible first home buyers can now purchase properties with just a 5% deposit without paying Lender’s Mortgage Insurance on properties up to $1.5m in Sydney.
Interest rates have fallen from their peak, making borrowing more affordable after the tough 2022-2024 period when rates climbed to 4.35%. With the cash rate now at 3.6% and further cuts expected, first home buyers’ borrowing power has improved significantly.
Rising rents over the past 2-3 years have made the “rent vs buy” equation shift dramatically. Many renters are now looking at their monthly rent and realising that, with the right property, they could be paying off their own place instead.
What First Home Buyers Are Actually Looking For
Here’s where many investors get it wrong. They assume first home buyers want the same things other investors want. They don’t.
After managing and selling properties in the Eastern Suburbs, and Lower North Shore for over 20 years, we’ve noticed some clear patterns in what first home buyers prioritise:
Their Must-Haves
- Move-in ready condition – They’re happy to do minor repairs, but major renovations are off the table. Most are using their savings for the deposit and don’t have extra capital for big projects
- Transport connectivity – Easy access to public transport or walking distance to Sydney CBD is non-negotiable. Properties near the new Sydney Metro are particularly hot right now
- Some outdoor space – Even a decent-sized balcony makes a huge difference. They want somewhere to have their morning coffee or host a small gathering
- Well-maintained buildings – They’re doing their homework on strata reports and building condition. A building with upcoming maintenance is a red flag
- Natural light – Bright, airy spaces that feel welcoming. Dark apartments don’t cut it, no matter how well-priced
What They’re Not Looking For
- Properties that need significant work
- Buildings with obvious maintenance issues or high strata levies
- Apartments with no natural light / south facing apartments
- Properties with difficult access or limited on street parking
The Biggest Mistake Investors Make When Selling
We see this all the time: an investor decides to sell but wants to keep their tenant in place to avoid vacancy costs. Fair enough. But here’s where it goes wrong.
They list the property without making any improvements, and the agent restricts access for inspections to suit their own schedule (not the tenant’s), and then wonder why it sits on the market for months.
The hard truth: First home buyers are emotionally investing in their future home. If your property looks tired, cluttered, or difficult to inspect, they’ll move on to the next one.
The Presentation Problem
Most selling agents don’t have much regard for tenants during a sale campaign. They demand certain open times without consulting the tenant, creating friction that affects the entire process. When tenants feel disrespected, they’re less cooperative, inspections become difficult to coordinate, and the property doesn’t show well.
At Local Agency Co., we take a different approach. We work with tenants throughout the sale process:
- Schedule opens around their availability (especially important now that more people work from home)
- Text them after each inspection to let them know we’ve finished
- Keep them informed about buyer interest and whether the likely purchaser is an investor or owner-occupier
- Give them advance warning if an owner-occupier makes an offer, so they’re prepared for the 30-day notice period
This cooperative approach means tenants stay onboard, the property shows better, and we can often keep them in place for the entire campaign – saving you vacancy costs.
Getting Your Property First Home Buyer-Ready
You don’t need to spend a fortune, but you do need to invest strategically. For most properties under $1.5m, a budget of $5,000-$10,000 can make a significant difference.
High-Impact Improvements
Don’t Have the Cash Upfront?
We partner with Rello Finance, who can fund up to 2% of your expected sale price (maximum $35,000) for pre-sale improvements. You pay them back at settlement with a service fee of 6.75% for up to 180 days. This means you can get your property looking its best without any upfront costs.
What Rello can fund:
- Marketing campaign costs
- Staging and styling
- Painting and minor renovations
- Cleaning and landscaping
- Same-day approval and funding
How We Market Differently to First Home Buyers
Most agents use the same template for every property listing, whether it’s targeting investors or owner-occupiers. We don’t.
For Investors, We Focus On:
- Immediate rental income
- Current lease terms and rental amount
- What tenants love about the property
- Investment fundamentals and yields
For First Home Buyers, We Focus On:
- The feeling of living there
- Lifestyle benefits of the location
- Natural light and living spaces
- The morning coffee on the balcony, the easy walk to work, the Saturday farmers market around the corner
Features are nice to have, but first home buyers need to feel what it would be like to call this place home.
Timing Your Inspections for Maximum Impact
Here’s something most agents get wrong: they schedule opens at times that suit their schedule, not times that show the property at its best.
We schedule inspections based on when the property gets the best natural light. East-facing apartment? We’ll run opens in the morning to capture that beautiful morning light. West-facing? Afternoon opens to show off the later day light.
It sounds simple, but it makes a real difference to how buyers experience the property.
Real Results: A Recent Success Story
We recently sold 24/52 High Street, North Sydney in just 11 days to a first home buyer who attended our very first open inspection.
The Details:
- Time on market: 11 days
- Buyer type: First home buyer
- We sold the property above the owners expectations
What made it work:
- Prime position near North Sydney Metro station
- Walking distance to Sydney CBD
- Abundant natural light
- Large balcony (perfect for that outdoor space first home buyers crave)
- The owner had lived there for 38 years and we helped her declutter to make the space feel bigger – no major renovations needed
This is exactly the type of property first home buyers are looking for right now, and our targeted approach meant we found the right buyer immediately.
Would you like to receive our investor newsletter?
Click and Subscribe to our newsletter and get instant access to our exclusive e-book — absolutely free! |
|---|
Should You Sell Vacant or With Tenants?
This depends on your property and financial situation.
Sell Vacant If:
- You can afford the holding costs (rates, strata, mortgage) without rental income
- The property needs minor cosmetic work
- You want maximum flexibility with open inspection times
- The property is likely to appeal primarily to owner-occupiers
Sell With Tenants If:
- You can’t afford extended vacancy periods
- Your tenant is cooperative and the property is well-maintained
- The property has strong investment appeal
- You’re willing to work around the tenant’s schedule
Our approach: We’ve successfully sold many tenanted properties by making the process work for everyone involved. Our flexible, respectful approach to tenant management means we can often keep tenants in place throughout the entire campaign while still achieving excellent results.
Why Choose Local Agency Co.?
We’re not a high-volume, high-pressure agency. We’re a boutique, independent business run by Michael and Kristalla – two Sydney-born siblings who’ve been managing and selling properties in Sydney for over 20 years.
What makes us different:
✓ Flexible campaign strategies – We don’t force every property into an auction because it suits our schedule. We choose the sales method that’s right for your property and market conditions
✓ Tenant-first approach – We keep tenants informed and cooperative throughout the sale process, reducing stress and vacancy costs
✓ Targeted marketing – We write copy and schedule inspections specifically for your target buyer, whether that’s investors or first home buyers
✓ Long-term client relationships – Many of our investor clients have been with us for decades because we prioritise results over quick commissions
✓ Local expertise – We know the Eastern Suburbs, and Lower North Shore intimately. We understand what buyers in these areas want
✓ Partnership with Rello Finance – We can help you access funds to get your property sale-ready without upfront costs
Ready to Sell?
If you’re thinking about selling an investment property under $1.5m, now is an excellent time to tap into the first home buyer market. With the right preparation, presentation, and sales strategy, you can achieve a strong result without the property sitting on the market for months.
Get in touch with Local Agency Co.:
Call us: 1300 258 888
Email: info@localagencyco.com
Visit: www.localagencyco.com
Let’s have a chat about your property and how we can position it to attract serious first home buyers in today’s market. Local Agency Co. – Your local property management and sales experts in Paddington, Sydney. Personalised service from locally-owned business owners who’ve been helping investors for over 20 years.
CLICK HERE TO SPEAK WITH AN EXPERIENCED LOCAL PROPERTY EXPERT