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How to Buy a House in Sydney, NSW

June 10, 2025
How to Buy a House in Sydney, NSW

Key takeaways:

  • Sydney property prices continue rising, with the citywide median at $1,435,000 and predicted growth of 3-7% in 2026.
  • Interest rate cuts in 2025 have improved buyer borrowing capacity, increasing competition in the market.
  • Western Sydney offers more affordable options with strong growth potential, while eastern suburbs remain premium markets.
  • First home buyers can now enter the market with just a 5% deposit from January 2025, under a new scheme that eliminates lenders mortgage insurance.

As a prospective home buyer looking to enter the Sydney property market, you might be dreaming about buying a house in Sydney, one of the world’s most vibrant and captivating cities.

But the process can seem tough, particularly if you are a first-timer. This comprehensive guide to buying property in Sydney is here to help you understand the process of buying real estate in Sydney, New South Wales (NSW), with easy-to-follow steps for buying a house. Let’s get you ready for this exciting journey!

Know What You Can Afford: The Start of Your House-Buying Journey

Before you embark on your journey to buy a house in Sydney, you need to determine how much you can afford.

Looking for properties that match your budget and preferences? Keep in mind that market listings change frequently. If you want to see houses for sale in Sydney right now, you can do that by checking out houses for sale in Sydney NSW with SohoAI.

This is a crucial step because it narrows down the property market to what is within your reach financially. Engage a lender and find out how much you can borrow to finance your property purchase.

According to recent data, Sydney’s median house price is now A $1,435,000 as of May 2025, with national home prices reaching a record high of $1,435,000.

Ensure that your budget also caters to other costs such as conveyancing fees, stamp duty, and building and pest inspection costs.

This is especially important as the Reserve Bank of Australia has cut interest rates twice in 2025 (February and May), bringing the cash rate down to 3.85%, which is affecting borrowing capacity and market competition.

The amount of stamp duty you’re required to pay will depend on the purchase price of the house in NSW and your eligibility for any concessions or exemptions.

Start Looking for Properties: Engaging a Real Estate Agent

Now that you have a budget, the exciting part of your journey to buy a house in Sydney begins – searching for your dream home.

During this step, consider engaging a local Sydney real estate agent who can guide you through the process and help you find a house that meets your requirements.

They can provide valuable insights into different Sydney suburbs, property features, and price trends. If you’re targeting Sydney’s safest suburbs or the best suburbs in Sydney for families, their advice will be crucial.

While looking for properties, make a checklist of the must-have features and the ones you’re willing to compromise on.

When you find a property you love, engage a solicitor or conveyancer to review the contract of sale. This ensures that the terms and conditions of the sale are favourable and legally binding.

Sydney’s housing market has shown strong resilience in 2025, with values increasing 1.7% in the first five months of the year, and experts predict Sydney dwelling values will rise 3-7% by next year.

Make an Offer: Navigating Property Purchase

Making an offer on a property is a critical step in the process of buying a house in Sydney. When you’ve found a property that you want to buy, your real estate agent can guide you on the right price to offer.

Once your offer is accepted by the seller, it’s time to move on to the next steps – exchanging contracts and paying a deposit.

It’s essential to conduct a pest and building inspection before making an offer. The inspection report will uncover any potential issues with the property’s condition that could affect the value of the property or lead to costly repairs in the future.

Exchange Contracts: Understanding the Legal Aspect of Buying Property

After your offer is accepted, you will exchange contracts with the seller. This involves both parties signing a copy of the sale contract.

At this point, it’s important to have your solicitor or conveyancer review the contract to ensure the terms are agreeable.

In NSW, a five day cooling off period applies after contracts are exchanged during a private treaty sale. This means you can withdraw from the sale if you encounter significant issues, but you may forfeit 0.25% of the sale price.

Pay a Deposit: Confirming Your Commitment

Upon exchange of contracts, you are required to pay a deposit. The deposit is usually 10% of the purchase price and it signals your commitment to proceed with the property transaction. Your solicitor or conveyancer will usually hold this in trust until settlement.

Remember to arrange for building and contents insurance at this stage. Once contracts are exchanged, the property is your responsibility and it’s important to protect your investment.

Complete the Buying Process: Welcoming You to Your New Home

Congratulations! If you’ve made it to this step, you’re about to become a home owner in Sydney. At settlement, the balance of the purchase price is paid, and the property title is transferred to your name.

Whether you’re in one of the best places to live in Sydney or in one of Sydney’s hidden gems, the journey to your dream home is one that you will always remember.

It’s time to move in and start living in Sydney. Welcome to your dream home in one of Sydney’s best suburbs!

Buying a House in Sydney FAQ

How do I buy a house in Sydney?

To buy a house in Sydney, you need to first determine your budget and get pre-approved for a home loan. Then, start searching for properties that meet your criteria.

Once you find a house you like, engage a real estate agent or a buyer’s advocate to guide you through the process. Review and negotiate the purchase price, make an offer, and if accepted, proceed with the legal steps.

What are the steps involved in buying a house?

The steps involved in buying a house in Sydney include:

  1. Getting pre-approved for a home loan
  2. Searching for properties
  3. Engaging a real estate agent or buyer’s advocate
  4. Negotiating the purchase price
  5. Conducting property inspections
  6. Reviewing the contract of sale and legal documents
  7. Exchanging contracts and paying a deposit
  8. Arranging a building and pest inspection
  9. Organizing property insurance
  10. Scheduling settlement
  11. Completing the purchase and taking ownership of the house

Should I use a solicitor or a conveyancer when buying a house in Sydney?

When buying a house in Sydney, you have the option to use either a solicitor or a conveyancer to handle the legal aspects of the transaction.

A solicitor is a qualified lawyer who can provide you with general legal advice and assistance. On the other hand, a conveyancer specializes in property law and focuses specifically on the conveyancing process.

What is stamp duty and how does it impact the purchase price?

Stamp duty is a tax imposed by the government on certain transactions, including property purchases. The amount of stamp duty payable depends on the purchase price of the house.

It is important to factor in the cost of stamp duty when determining your budget and making an offer on a house in Sydney.

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Our AI match engine will match you with over 150,000+ properties and you can swipe away or shortlist easily. Making your home buying journey faster and easier.