A Grade Properties = "Flyers": The Ones Everyone Wants

Veronica and Meighan call A grade properties "flyers" because they fly off the market—fast. These are the homes that are always in demand, even during a downturn. They're typically located in desirable, tightly held areas and offer key features like:

⏺ Scarcity: They're not easily replicated.

⏺ Future owner-occupier appeal: Think timeless floor plans, good light, ventilation, and privacy.

⏺ Few objections: Any minor flaws can be easily improved or overlooked.

What really sets these properties apart is their emotional appeal. Buyers are often willing to stretch their budgets or fiercely compete at auction for a flyer. These homes tend to outperform the median growth of their suburb over time, making them a strong financial choice for those wanting capital growth.

B Grade = "Floaters": Average but Okay

B grade properties—aka "floaters"—aren't necessarily bad, but they won't make you rich either. These are the properties that track alongside the market average. They're often located in good suburbs but have mild compromises that prevent them from being top-tier, such as:

⏺ Being on a local rat-run road (not quite a main road, but still busy)

⏺ Odd layouts or less-than-ideal orientation

⏺ Lack of privacy, airflow, or natural light

⏺ Located in the middle floor of an apartment block with no standout features

These homes can still work well for owner-occupiers who aren't trying to use their property as a financial stepping stone. However, if your goal is to build equity quickly and upgrade later, a floater probably won't do the heavy lifting for you.

C Grade = "Flops": Buyer Beware

C grade properties are the ones you should run from—Meighan literally says, "Avoid, avoid, avoid." These are often easy to buy (because nobody else wants them), but hard to sell. They underperform the market, and over time, the value gap between them and better-quality properties only grows. Characteristics of C grade properties include:

⏺ Located on main roads or near train lines, petrol stations, or noisy commercial zones

⏺ Inside large cookie-cutter apartment complexes with high turnover

⏺ House and land packages in outer suburbs with future oversupply risks

⏺ Poor layouts, low light, no privacy, or other unsolvable problems

Buying a flop might feel like a "foot in the door" at the time, but it can become a financial noose that drags you down and prevents you from moving forward.

Don't Let FOMO Trick You Into a Bad Purchase

In a hot seller's market, it's easy to fall into the trap of thinking any property is better than none. Veronica highlights how even experienced agents notice that buyers are currently overlooking flaws they would typically avoid. But the property market is cyclical. Once it cools down, those same flaws will hurt you—either in resale value or in your ability to attract buyers.

That's why understanding what makes a property A, B, or C grade is so important. A poor choice now can cost you down the track, while a smart one can accelerate your financial future.

The Power of Scarcity and Desirability
Just because something is unique doesn't mean it's good. A house built into the side of a mountain using an old Boeing 737 might be one-of-a-kind, but its buyer appeal is extremely limited. Scarcity only works when paired with desirability. A true A grade property will always be in demand because it ticks the boxes that matter to most buyers—now and in the future.

The "Drive-By Test": A Real-World Filter
One simple way to gauge property quality is to do a drive-by. Ask yourself:

⏺ How does the street feel?

⏺ Do the neighbouring properties look well-maintained?

⏺ Is the area quiet, or is there a burnt-out car nearby?

If your gut says no, you're probably not looking at an A grade home. This isn't about snobbery—it's about resale appeal and lifestyle suitability.

When to Compromise (And When Not To)
Veronica and Meighan acknowledge that compromises are often necessary, especially for first home buyers. But how and where you compromise matters. Their advice?

⏺ If the property is B grade, ensure the location is A grade.

⏺ If the location is B grade, make sure the property is A grade.

⏺ Don't accept a C grade anything—ever.

This strategic approach helps protect your investment and keeps your long-term goals within reach.

Floaters Can Work—If You Know What You're Doing

Floaters aren't necessarily bad. In fact, they can be a good choice for buyers who don't plan to upgrade or use equity to invest later. For example, a slightly noisy road or an older layout may be perfectly fine if you're planning to live there long-term and are comfortable with slower capital growth.

However, if you're relying on your first home to help you step up the property ladder, choosing a floater could limit your financial mobility.

The Danger of Holding on to a Flop
The longer you own a C grade property, the further you fall behind the market. If you're stuck with a flop, the gap between your property and better-performing homes only grows over time, making it harder and harder to catch up. That's why Meighan recommends divesting from any underperforming assets as soon as possible.

How to Identify Flops Before You Buy
Here are some red flags that could indicate you're looking at a flop:

⏺ It's part of a large, oversupplied development

⏺ It backs onto a noisy or unsightly feature

⏺ There's no natural light, privacy, or airflow

⏺ It's in a suburb where new land is constantly being released (e.g. fringe housing estates)

⏺ Incentives are the main selling point (e.g. depreciation, grants)

If it's easy to buy and there are few competing buyers—especially in a strong market—it's probably a red flag.

Final Tips and Tools to Buy Smarter
Throughout the episode, Veronica and Meighan reinforce the need for education, self-awareness, and patience. If you're serious about making your first property purchase work for you, they recommend their online resources including:

⏺ Stepping Stone Strategy – Learn how to use your first home to leverage into your next one.

⏺ Where to Buy Workshop – Understand the property, price, and position equation.

⏺ Free Tools and Mini Courses – Available at homebuyeracademy.com.au

Why This Episode Matters for First Home Buyers
Buying your first home is one of the biggest financial decisions you'll ever make. Understanding the difference between A, B, and C grade properties can mean the difference between long-term wealth and long-term regret. This episode empowers you with the knowledge to identify smart property choices—and avoid common traps.

Whether you're buying to live, invest, or both, the insights from this episode will help you make better-informed, future-focused decisions.

👉 Ready to get started? Check out THE First Home Buyer Course.