So you've decided to take the plunge and buy your first home. Now what?

We caught up with Frank Valentic, Director of Advantage Property Consulting and one of Australia's leading buyer's agents to find out what comes next.

Look for affordability without skimping on location

For most people, their first home won't be their forever home. It doesn't need to be perfect, but it should still be a sound investment. 

"We emphasise buying smart and seeing your home purchase as more than just a living situation but a step in growing your portfolio. You might want to ask yourself “How much rent will I get for this apartment?” or “What has been the capital growth in the area over the last few years?”, Mr Valentic said.

"For those first home buyers who do not want to compromise on space, you may have to look further out depending on your budget or look for townhouses or terraces. If you are looking to keep more of your lifestyle, an inner city apartment may be the perfect living situation for you," Mr Valentic said.

Look at location and amenities

The building itself shouldn't be the only thing you look at when you're considering what you should buy. Things like school catchment zones, proximity to public transport and shopping centres are important too.

"Looking at the amenities and area around you is particularly important, as they are great financial health indicators that the area you are looking to buy in has infrastructure and amenity to attract people to live there."

Look at suburbs out from your dream location

'Bridesmaid suburbs' (suburbs surrounding their more expensive 'bride' counterparts) can hold lots of promise for the future.

"Looking for undervalued suburbs next to the pricier areas is always a something we recommend to our first home buyers – over time, population growth and gentrification will mean that there will be capital growth in your area.

"It’s always good to also look at areas with employment growth as this will increase demand for homes in that area."

Related reading:

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A third of first home buyers opting for investment property over first home, report reveals

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