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Nearly half of first-home buyers regret their purchase, mainly due to overpaying, low savings, or buying at auction, as single buyers face even greater hurdles entering the market.
A new First Home Buyer Report 2025 showed that 45 per cent of first-time buyers who purchased their first property over the last 12 months regretted their decision.
Across the 1,006 first home buyers surveyed, 26 per cent said they regretted overpaying for their home, with 47 per cent of first-time buyers paying more than they initially budgeted, marking a 38 per cent increase since 2022.
Similarly, 18 per cent of first-time buyers reported having spent an extra $50,000 on their initial $500,000 budget, adding over $3,500 in annual loan repayments.
Data showed that 77 per cent of first-home buyers who purchased at auction were far more likely to regret their decision than 37 per cent of those who bought off the plan or through an agent.
Finder’s personal finance expert, Sarah Megginson, said the urgency to enter the property market before prices increase has added pressure on first home buyers, easily leading to future regrets.
In total, 60 per cent of the survey respondents said the recent interest rate cuts influenced their decision to buy now.
“First home buyers are not expecting to step into a mansion for their first property, but even those with realistic expectations are shocked that even entry-level homes carry eye-watering price tags.”
Over 10 per cent of first property buyers also wished they had saved a larger deposit, while 14 per cent of buyers said they have no savings left after buying their property, and one in three said they have less than $10,000 remaining.
“Saving a deposit is now a multiyear grind and many first-time buyers rely heavily on the ‘bank of mum and dad’ to bridge the gap between what they have and what they need,” Megginson said.
The survey found that 70 per cent of first-time buyers have bought with less than a 20 per cent deposit.
“Many buyers are stretching themselves to the limit with their finances and they have little buffer for unexpected expenses – and ironically when you’re a home owner, the risk of an unexpected expense increases as things can and do break around the home.”
“Without emergency savings, you could end up in a seriously stressful financial situation,” she said.
The survey also found that single buyers have increasingly been priced out of the market, with only 16 per cent of suburbs across the country where houses have been affordable for a single income earner in 2025, compared to 57 per cent in 2017.
The survey found that single buyers have increasingly been pushed out of the market, with only 16 per cent of suburbs offering affordable houses for a single income in 2025, down from 57 per cent in 2017.
Similarly, only 28 per cent of suburbs across the country offer affordable units for a single income in 2025 compared to 66 per cent in 2017.
Megginson said that in NSW, South Australia and Western Australia, the number of suburbs where an average single Australian can afford mortgage repayments on a median-priced house has dropped by about three-quarters.
Megginson said that affordability for single buyers has plummeted in NSW, South Australia and Western Australia, with roughly three-quarters of once-accessible suburbs now out of reach for the average income earner.
“Buying a home is harder than ever, especially if you’re trying to do it on your own without a partner or family member.”
She said that mortgage stress presents significant challenges for first-time buyers.
“With up to three interest rate cuts predicted before Christmas, that will help current mortgage holders ease some pressure.”
“But demand – especially in affordable markets – is expected to surge, which could potentially push entry-level prices even higher and squeeze first home buyers further,” Megginson concluded.
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