First Home Buyer: shared equity - breaking the rent cycle
Address: Kensington
Price: $1,075,000
Size: 74sqm internal, 13 sqm balcony, 13 sqm parking
Another option for this keen ocean swimmer
Brief
Renting in the Eastern Suburbs had stopped making sense. Years of lease renewals, rent increases and zero equity had brought this client to a clear decision point: stop paying down someone else's mortgage. The NSW Government's shared equity scheme made the maths work — a meaningful deposit boost in exchange for the government taking a stake in the property. The brief was equally clear: a two-bedroom apartment, not a one. Not for a flatmate now, but for the option of one later — a hedge against future repayments, a partner moving in, family staying or simply a home office that could earn its keep if circumstances changed.
This client works across the eastern suburbs, but has a social life centred around Surry Hills so centrality was key, without sacrificing space, and without being in the thick of it all.
That second-bedroom flexibility shaped the entire search. It ruled out a wide band of one-bedroom stock that otherwise fit the budget, and even a one bed with study that the client loved, but that could not feasibly deliver the future flexibility required.
Challenge
The shared equity scheme adds a layer most buyers never have to think about: eligibility caps, property price thresholds, and a government co-owner add to some of the initial complexity.
Layered on top was the ordinary first-home-buyer problem at this budget level in the Eastern Suburbs and inner south-east — two-bedroom apartments with genuine separation between bedrooms, a second bathroom, natural light in both, and a building that wasn't run-down, buried in an area awash with investor stock or carrying special levies the client couldn't yet absorb. Most stock in range failed on at least one of these.
With the market absorbing the twin shocks of global uncertainty followed by a 2026 budget that significantly transforms the property game, we approached the market cautiously, carefully tracking auction postponements, variations by area and price guide shifts.
We watched the market falter in Maroubra Junction, hampered by a large volume of investor-grade stock. We saw excellent prices being achieved for quality stock in Randwick, whilst B and C grade stock took time to sell, and vendor’s began to lower expectations.
Buyers were out in force, but many were sitting on their hands when it came time to move confidently forward.
But it was the eastern edge of Kensington that started to appeal. The location truly worked for this client, with easy access to Surry Hills and the city via the Light Rail, coupled with a central location for much of the Eastern Suburbs without the hassle of crossing Anzac Parade in peak, down to Maroubra, and across to Bondi/Bronte. Our Development Application Searches revealed a range of new amenities planned that will deliver even more liveability to the area.
Solution
The property had passed in at auction, sitting unsold with a vendor who'd expected a clearer result. That's a different negotiation to bidding under the hammer - pricing has to be argued on evidence and a vendor stinging from a quiet auction can be either more flexible or more defensive depending on how the follow-up is handled.
We targeted the post-auction window directly, moving straight from the auction room to a boardroom. A pass-in is information: it tells you the market's ceiling on the day, and gives a negotiating buyer real leverage if the case is built properly. A comparable sales review across the Doncaster Avenue building and the immediate Kensington/Kingsford two-bedroom market gave a defensible number.
The building itself supported the case: with still some investor ownership, the building had a higher rate of owner-occupiers than others nearby - and certainly in the majority.
The negotiation closed within budget and inside our pricing thresholds, but well below the vendor’s expectations. It’s hard to be absolutely definitive, however the guesstimate is a circa 6% discount off what the property may have secured before this correction.
An east facing balcony delivers morning sunshine to this early riser, and a bank of northerly windows makes winters warmer - looking forward to seeing it furnished well
Result
A two-bedroom, two-bathroom apartment, with an east facing balcony and windows down the entire northern side, in a location that puts the city, the racecourse and Centennial Park within easy reach. The second bedroom delivers future flexibility — a home office today, a flatmate if and when the client's circumstances call for it. No lease to renew in twelve months. No landlord's plans dictating the client's own.
“I didn’t think I’d be able to buy yet, let alone get the flexibility of a second bedroom. Having someone run the process while I did my day job meant nothing fell through the cracks at the worst possible time. The communication, data, market knowledge and all the small details kept the whole process (and me) relaxed. The whole process didn’t even interrupt my weekends of recovery!”
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