A Melbourne couple has revealed the strategic way they were able to buy their first home in their ideal location. Rising property prices mean many Aussie first-home buyers are reshaping their housing preferences and making compromises to get onto the property ladder.

Kyra Tsitsinaris, 25, and Daniel Charalambous, 26, purchased their first home together in Airport West this month, a three-bedroom, one-bathroom house for $900,500. Tsitsinaris told Yahoo Finance it was important for the couple to get into the market now, so they decided to buy a “fixer-upper” as anything else would've been outside their price range.

The couple plan to fully renovate the home and add another bathroom, with the “four walls holding it up” the only thing they will keep the same.

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"We've purchased an old property that we intend to fully knockdown in the next few years,” Tsitsinaris said. now, so they decided to buy a “fixer-upper” as anything else would've been outside their price rang.

“As my partner is a carpenter, he has the skills to help us create our dream home and we can't wait to start on this journey.

“It was always the plan that we would purchase land in a great location with the intention that we'd build the house we want to live in, rather than buying it as is. For us, location was the priority and the house is secondary.”

Are you a first-home buyer with a story to share? Contact tamika.seeto@yahooinc.com

‘Adjusting expectations’: Major home buying shift

Great Southern Bank home lending specialist Frank Paiano said the bank was seeing a “real shift in how Australians approach home buying”.

“They’re becoming more strategic and flexible in their approach – which can really help in today’s market,” he told Yahoo Finance.

“Many first home buyers are finding success by adjusting their expectations and working with what’s achievable.”

The average Aussie property is valued at $814,293, according to CoreLogic, while in Sydney prices are even higher at $1,193,228.

Research from the bank found that 64 per cent of homebuyers had prioritised location over size, with many opting for apartments so they could buy in their ideal location.

“Often the compromise is due to wanting to be near the right schools,” Paiano said.

“It’s also common for buyers to want to be closer to grandparents for the support, while for others gaining home loan approval has been easier for an apartment, rather than holding out for the dream home.”