The world — or New South Wales at least — is an oyster for first-time buyers who are looking to take advantage of the state’s First Home Buyer Choice, but five regions in the state are likely to provide not only an appealing lifestyle but also the best capital growth opportunities.

The First Home Buyer Choice, which became available this year, is opening opportunities for first-home buyers in New South Wales to participate in the market, as it allows buyers to opt for a smaller annual property tax instead of an upfront stamp duty.

InvestorKit founder and head of research Arjun Paliwal said five regions possess the qualities that make them a great option for first-home buyers playing the long game.

“As a first home buyer, you want to look for markets that are affordable, have housing supply shortages which will lead to capital growth, in addition to offering a great lifestyle and infrastructure pipeline, as this combination demonstrates growth potential,” he said.

“Many will also want a low-cost and idyllic lifestyle which often comes with being in proximity to the major city or having a coastal backdrop, and those planning to reside in these areas will also expect strong job opportunities.”

Mr Paliwal said the First Home Buyer Choice will help many buyers in New South Wales enter the market sooner by at least two to four years.

“If you’re a first-home buyer, I suggest taking advantage of these government benefits quickly,” he said.

“Demand-driven incentives like these can make it worse in the long term. It will attract more buyers to the market and push up property prices $250,000-300,000 in the years ahead, and the amount you think you’re saving in stamp duty will need to be factored into this price growth.”

Here are five best regions with long-term capital growth potential to consider for buyers taking advantage of the First Home Buyer Choice:


Median home price: $469,000

Tamworth offers excellent connection to Sydney and Brisbane, given that it is only a short flight away from both capital cities.

Home to a large healthcare facility and the New England University, Tamworth still has around $3.8bn worth of infrastructure projects in the pipeline, which will boost the local job creation and housing demand.

Property prices in Tamworth is slated to enjoy a long-term growth trajectory, supported by the limited pipeline of future builds.

Central Coast

Median home price: $900,000

First-home buyers are often priced out of the Central Coast market — while properties in Central Coast bear higher price tags, first-home buyers can consider suburbs in the region to look for a house thanks to the First Home Buyer Choice. This is especially true for borrowers with higher borrowing capacities.

With a property in the Central Coast, buyers can enjoy the coastal lifestyle without sacrificing accessibility to Sydney.

Wagga Wagga

Median home price: $500,000

Considered the largest inland city in New South Wales, Wagga Wagga witnessed one of the biggest price appreciations in 2022.

Despite its recent growth, Wagga Wagga remains affordable to many, particularly for first-home buyers who might be thinking of turning their property as an investment in the future.

And here’s why first-home buyers can make their Wagga Wagga property as an investment: it has one of the tightest rental markets in the country.

With the planned renewable energy projects and defence project, Wagga Wagga is expected to continue seeing great demand.

Coffs Harbour

Median Price: $815,000

Coffs Harbour was one of the top-performing markets during the height of the market and it is not surprising given the kind of lifestyle it provides that is in line with the “escape from the city” trend.

First-home buyers wanting to get a seaside property without spending as much as they would have if they bought in Byron Bay would find Coffs Harbour a relatively more affordable option.

Properties in Coffs Harbour are also investment-ready, making it more attractive for first-home buyers who plan to break into the investment market in the future.

Western and Southwest Sydney

Median Price: Varies depending on suburb

The region is home to some of the most affordable suburbs in Sydney, including Penrith, Blacktown, Campbelltown, Liverpool, Bankstown, and Badgerys Creek.

In recent years, the region have seen some price declines that now provide first-home buyers to purchase a home at below peak pricing.

A lot of good things are in store for the region, which includes the Western Sydney Airport that is poised to open in 2026. This, alone, is already expected to create more than 25,000 jobs in the next 10 years.


Photo by ledoc from Pixabay.