Should my first home be my dream home?

The short answer

No, and it doesn't need to be. Your first home's job is to get you started. A modest home you can afford comfortably is usually a stronger start than a stretch for the home you'll want in fifteen years.

Mine definitely was not

My first home was a two-bedroom row house. Nothing glamorous. But it was ours.

We bought it in early 2007, seven years after I landed in Australia as a student, with 95% borrowed. We'd looked at rentals and nothing felt right. If we were going to compromise anyway, why not compromise on something we actually own?

In 2024, seventeen years later, we built the home I used to dream about. The row house came first.

You won't feel sure

You will not feel sure. Nobody does.

The ones who struggle are not the people who bought something imperfect. They're the people who kept waiting to feel sure.

That doesn't mean buy anything. It means know what matters most, and be clear about what you're happy to give up for now.

Questions to settle before you start looking

What has to be true about this home for the next five to ten years?
What would you give up to own sooner? A second bathroom, a garage, a bigger yard, a longer drive to work?
At this price, do you still keep a buffer after settlement?
If your plans change in five years, could you move on from it without it hurting?

A first home you can hold comfortably gives you options later. A dream home you can barely hold takes them away.

About Jigar Modi

I came to Australia in 2000 as a student with $850. I've worked inside two major banks and spent over 10 years in mortgage broking. That's over 15 years in lending, and more than $450M in settled lending.

Founder of First Home Ready. I help Indian professionals and families avoid costly financial mistakes before they sign. Read my story

Mine definitely was not

You won't feel sure

Questions to settle before you start looking

Related questions

Get one of these every week