Buying Land Before Your First Home? Think Again

“It was just a small block of land …”—until it wasn’t!

Have you been tempted to buy a small block of land before reaping the rewards of first home buyer benefits?

I recently spoke to a first home buyer who bought a modest piece of rural land years ago with family members. It seemed harmless enough at the time—a small investment, shared ownership, held for years without much thought.

But when it came to buying their actual first home, things got complicated.

Here’s what they didn’t realise:

🚫 Owning any land (even rural, even shared) in the past 10 years disqualified them from using the Housing Australia First Home Guarantee—one of the most powerful tools for getting into the market with a low deposit.

🔒 They couldn’t use their share of the land as security for their home loan because it was co-owned with family, and it was hard to prove how other owners would benefit.

💸 Fortunately, the land wasn’t residential, so they still qualified for stamp duty concessions. But if it had been, that would’ve been another costly roadblock.

👉 The takeaway?
Thinking of buying “just a bit of land” before you buy your first home? Pause and ask: Could this small decision cost me tens of thousands later?

If you’re not sure—that’s what I’m here for. Let’s have a chat before you make your next move.