Buying your first home is one of the most daunting experiences one can engage in. First, a deposit has to be saved to cover at least 5% as well as stamp duty. In Australia, this is a sizable amount of money. The average property price in Sydney is over $800,000 which means the minimum required to buy a first home in Sydney at this price is $40,000 plus approximately $32,000 for stamp duty. That’s a total of $72,000 for the privilege of taking on most likely the largest debt in your life. Don’t get discouraged since most likely the first home won’t be $800,000 but possibly closer to $450,000 to $500,000 (if in Sydney). The 5% deposit drops down to $22,500 plus $16,000 stamp duty making it a total of $38,500. There are also some government incentives if purchasing new construction. The total number drops yet again if it’s new construction where the government will offer $15,000 in concessions. That will pretty much wipe out the stamp duty making it even more affordable at the $23,000 level.