Despite talk about the number of young people entering the market for the first time declining, I  actually think there may be a lift in first home buyer numbers in 2015.

As investors move out of the market, it will make room for first home buyers to enter, although it’s worth noting that we are starting from a relatively low base. Nevertheless, if you’re considering stepping onto the property ladder for the first time this year, the following tips can give you a head start on the competition: 

1. Be sure to work out your borrowing capacity by obtaining a loan pre-approval before you hit the open for inspection circuit. Be careful not to over-extend yourself financially – a mortgage broker can help you crunch the numbers by reviewing you employment history, wages and salary information, assets, and liabilities such as credit card debts.

2. Be prepared to take a flexible approach to break into the housing market – this can mean looking for more affordable homes in suburbs or towns that may not have originally been on your shortlist.

3. Also, look for homes that are close to shopping, schools, hospitals and recreational facilities, and if they’re in walking distance, even better. It’s always good be able to get to work as quickly as possible, so access to motorways and railway stations are other valuable features to look for when buying a home.

4. Do your research before taking the plunge, by immersing yourself in business, economic and demographic data about the area you’re looking to buy in. The Australian Bureau of Statistics website is usually a good starting point, followed by state and local government information, not to mention real estate and personal finance magazines.

5. First-hand experience is vital, so don’t hesitate to attend and observe some auctions as this will provide a good gauge of the state of the market in the area.