First Home Buyer Scheme Changes: What They Could Mean for Investors

With the RBA rate drops and the expansion of the Home Guarantee Scheme, the property market is starting to see renewed activity. On the 1st of October, a major shake-up to Australia’s Home Guarantee Scheme came into effect, and while the headlines are focused on first home buyers, there are a few important flow-on effects for investors to keep in mind.

More First-Time Buyers Entering the Market

With the removal of income caps and an increase in property price limits, the pool of eligible first home buyers has expanded significantly. On top of that, there’s no longer a cap on available scheme places meaning first home buyers can now apply year-round, rather than competing for a limited allocation.

In practical terms, this may increase competition at the entry level of the market. Investors looking at units, townhouses, or smaller houses in metro areas may start to notice more first-time buyers active in the same price brackets.

Upward Pressure on Prices in Some Segments

While this isn’t a guarantee, the broader accessibility of the scheme may lead to renewed buyer demand in certain locations — particularly in outer-ring suburbs, regional centres, and established areas where first home buyers and investors often overlap.

If you're currently considering a new purchase or planning to expand your portfolio, it's worth paying close attention to how buyer activity shifts over the next few months.

What to Keep in Mind

• Entry-level stock may move faster in the short term

• Rental demand remains strong in many areas, but yields could soften slightly if prices push up

• Finance conditions continue to shift, so keeping an eye on rates and lender policy is key

Every investor's strategy is different. If it’s been a while since you last reviewed your lending setup, now’s a good time to make sure it still suits your goals.