On the surface, this advice on property sounds sensible and responsible. Much of it is shared with good intentions—passed down from parents, friends, social media, podcasts, or online forums. But when these rules are followed without context, buyers often end up making decisions based on fear, not strategy. This is where many first time home buyer mistakes begin.
In this episode, we unpack the property rules that sound smart but can quietly work against you if you don't understand when, how, and if they should apply to your situation. Whether you're buying a home to live in or thinking ahead about property investment advice, understanding the difference between helpful guidance and harmful assumptions is critical.
Below, we break down the most common rules, explain why they exist, and show you how to think about them more strategically—so you can make confident, informed decisions.
🏡 "Always buy the worst house on the best street"
Buying the worst house on the best street is one of the most repeated rules in property circles. It's often positioned as smart advice on investment property—buy something rundown, renovate later, and manufacture growth.
In reality, this approach assumes you have the time, capital, skills, and emotional bandwidth to renovate successfully. For many first home buyers, that's not realistic. Renovations often cost more than expected, take longer than planned, and place extra pressure on already stretched budgets.
There's also no guarantee that every "best street" delivers the growth buyers expect. Without understanding local demand, resale appeal, and market fundamentals, buyers risk overcapitalising. What sounds like solid property investment advice can quickly become a costly mistake if it doesn't align with a clear long-term plan.
🏢 "Never buy strata or body corporate"
Another common rule is to avoid strata or body corporate altogether. Many buyers worry that body corporate fees are too high, or fear losing control over their property. While poorly managed buildings do exist, blanket avoidance often creates more problems than it solves.
In this episode, we explain what corporate corporate fees actually cover, how to assess meeting minutes and sinking funds, and how to tell the difference between well-managed and poorly run buildings. In many cities, refusing to consider strata pushes buyers into worse locations, lower-quality homes, or properties that stretch their budget unnecessarily.
For buyers thinking long term, understanding strata is part of broader rules for investment property. Context matters far more than fear-driven rules.
🔨 "Never buy at auction"
Auctions are one of the biggest sources of anxiety for first home buyers. They're often described as emotional, aggressive, or too risky. But auctions themselves aren't the issue—lack of preparation is.
In markets like Sydney and Melbourne, many quality homes sell under the hammer. Avoiding auctions entirely can shrink your options and increase the risk of overpaying through private treaty. In this episode, we unpack the pros and cons of buying a house from auction and explain how preparation changes everything.
We cover practical auction strategies, understanding buyer competition, and setting clear limits. With the right structure in place, auctions become far less intimidating — and far more predictable.
💰 "Never stretch your budget"
Stretching recklessly is dangerous—but refusing to reassess your numbers can be just as costly. Many buyers cling to outdated assumptions and end up compromising too far on location, quality, or suitability.
We talk about the difference between emotional overspending and informed, sustainable decisions. Using real data, buffers, and cash-flow guardrails helps buyers avoid making decisions based purely on fear. Buying too conservatively can lead to expensive moves, renovations, or selling costs much sooner than expected.
🚫 "Just get on the property ladder"
This is the rule we challenge most strongly.
Buying something purely to say you're "in the market" can create serious long-term problems. The wrong asset can limit your ability to move, upgrade, or invest later. For buyers who want to follow rules for investment property or seek ongoing advice on investment property, the first purchase matters far more than speed.
Rushing into ownership without a clear strategy often delays progress rather than accelerating it. This is one of the most common first time home buyer mistakes—and one that's difficult to undo.
🎯 Making Sense of Conflicting Property Advice
By the end of this episode, you'll understand which property rules deserve flexibility, which ones need context, and which ones should never be broken. More importantly, you'll learn how to filter advice on property through your own goals—whether that's lifestyle, long-term growth, or future investment.
Instead of reacting to headlines or copying generic advice on real estate or property investment, you'll gain a clearer decision-making framework. That clarity helps you avoid costly mistakes, reduce stress, and move forward with confidence — knowing your choices are based on strategy, not fear.
