The New Five Percent Deposit Scheme: What It Means for Sellers and Agents (and Why Presentation Matters More Than Ever)
Australia’s expanded First Home Guarantee is kicking off, and the rule changes are expected to reshape the property market from 2025 through 2026 in a significant way.
With deposits of only five percent, no income limits, higher price thresholds, and unlimited places, the gates have officially opened for a wave of new first time buyers who previously could not get near a mortgage broker without nerves and a deep breath.
While the media debates whether prices will rise by one percent, six percent, or something somewhere between gentle and chaotic, there is one angle every seller and agent should be paying close attention to.
A large increase in first time buyer activity does more than shift demand. It changes how buyers behave. This makes presentation more important than at any point in the past few years.
This is where staging stops being a pleasant extra and becomes an essential strategic tool.
More First Time Buyers Means a Very Different Market
With barriers removed and lender mortgage insurance no longer required under the scheme, thousands of buyers who were previously locked out of the market will now enter earlier than expected.
This means:
• more competition in important price brackets
• more emotional purchasing
• more motivated buyers
• faster sales cycles
• higher expectations around how a home feels
Supply is still tight. Builders are not delivering new homes fast enough and approval processes remain slow. When a large new group of buyers enters the market at once, even a small rise in demand can shift conditions strongly toward sellers.
For homeowners thinking about selling, especially in the entry level to mid range bracket, this is a very positive turn.
But only if your property stands out.
Why First Time Buyers Are Especially Influenced by Staging
1. First time buyers purchase with their hearts
They are not seasoned investors. They picture Christmas dinners, furniture placement, the feel of the living area, and whether the backyard passes the test for pets and outdoor living.
If a home feels welcoming, fresh, and stylish, their emotional connection strengthens instantly.
2. They are competing more intensely
Many buyers will stretch close to their borrowing limit under the new caps. When someone stretches financially, the property must feel worth the commitment.
Staging increases perceived value the moment the buyer steps inside.
3. They want a completely move in ready home
Most first time buyers do not want to deal with renovation costs after using nearly all of their savings on the deposit and settlement.
Staging signals that the home is clean, practical, modern, and ready to enjoy immediately.
4. They compare every listing online
Real estate scrolling is practically a national hobby. A staged home looks significantly better in photos, receives more clicks, and holds buyer interest for longer.
What Sellers Should Expect in This New Landscape
1. Stronger buyer activity under the new price thresholds
With higher allowable purchase prices across Australia, especially in Perth, sellers in the range from about four hundred fifty thousand to eight hundred fifty thousand can expect a noticeable jump in interest.
2. Faster decision making
Buyers who have waited years for a clear opportunity to enter the market will act quickly. Expect strong urgency and plenty of fear of missing out style behaviour.
3. A larger gap between impressive homes and average homes
As competition increases, buyers become more selective. Presentation becomes the deciding factor between a confident sale and a slow campaign.
4. Fringe suburbs become more appealing
The higher price thresholds make certain suburbs newly accessible. As these suburbs gain momentum, staged homes are in the strongest position to capture the energy of the market.
How Staging Helps Sellers Benefit from the Rising Demand
Creates instant emotional connection
Styled rooms make buyers feel at home instantly. Emotional response leads directly to stronger offers.
Encourages buyers to offer their maximum
When buyers feel emotionally attached, they are far more comfortable offering close to their top borrowing capacity.
Helps your home stand out
More eligible buyers also means more listings competing for attention. Staging ensures your home rises to the top.
Reduces days on market
A cohesive, attractive, aspirational home does not sit around. It creates a sense of urgency.
So Will Prices Go Up?
Most experts expect at least some upward pressure.
• Government modelling predicts small and steady increases
• Independent analysts expect between three and six percent uplift
• Some forecasts suggest stronger jumps in suburbs with large first time buyer populations
Even if price growth is modest, the real shift is in buyer behaviour. More motivated and emotionally driven buyers create a stronger environment for well presented homes.
The Bottom Line for Sellers and Agents
The expanded first home buyer scheme will create:
• more competition
• more urgency
• more emotional purchasing
• more buyers stretching close to their borrowing limit
• more attention on homes near the key price thresholds
If you want to make the most of this wave of motivated first time buyers, presentation is no longer optional.
Staging helps your home:
• attract more buyers
• stand out online
• build emotional momentum
• sell faster
• sell for a stronger price
