Ridiculous. Absurd. A joke. Terrifying. The price of Sydney property has ever been thus. Since the arrival of the First Fleet, industry experts have been predicting a drop in real estate prices, but it never seems to happen. Quite the opposite, in fact. In the time it takes to save your deposit, the prices surge further out of reach. So how do you do it? We spoke to the experts about some sure-fire ways into your first apartment.

1. Budget
The six-letter soporific: ugly, dull, and sickeningly sensible. Sadly, however, a budget is essential if you want to stash the cash, says Julie Berry, of the Financial Planning Association. Draw up a list of all outgoings, says Berry, "including discretionary expenses, such as restaurant meals, haircuts, club memberships, the lot ... and always over-estimate". Subtract this figure from your income, and you'll have the amount you can save for a deposit. "If you have problems with putting it away, set up an account with a financial institution that automatically deducts a certain amount from your bank account, or wherever it is your pay goes into," she says. "Have it done electronically every month or, even better, every week."

2. Income insurance
Also a smart move, for several reasons. Not only does income insurance (or salary continuance), guarantee you an income in the event of you losing the ability (through injury or illness) to generate one yourself, but lending institutions look more favourably on people who are committed enough to take measures to protect their wealth. Julie Berry recommends it for everyone, "because even young people get sick or hurt". And it's fully tax deductible.

3. Lose the credit card
This is especially important when applying for a loan, says Berry, when any debts (or virtual debts) work against you. "Even if you have nothing on your card, financial institutions count your credit limit as a debt," she says. "This is logical when you think about it, because you may have nothing on your card the day you get your loan approved, but next morning you go and buy a $10,000 home entertainment system."
If you don't want to relinquish your card, then at least wind back the credit limit, says Berry.

4. Look at property
It's likely to take you at least a year to save your deposit, so you might as well spend that time productively, in researching the market. "The biggest issue with first buyers is price," says Lisa Bradley, of buyers' agents Finders Keepers. "Many people get a shock when a property sells for more than the price quoted by the selling agent." Learning how to translate agents' quotes into real sales prices takes homework. "Start by tracking properties through their marketing campaigns," says Bradley. "Go to an inspection in the first week, and then in the final week, then attend the auction. This will help you understand how prices move, so you don't have to rely on the agent's opinion."
This will also get you accustomed to the open-for-inspection and auction processes, so that you can nod knowingly at inspections when really what you're doing is looking at the wedding photos.

5. Research the loans
All mortgages are not born equal. "There are hundreds of loan products on the market, and they can be designed according to the borrower's specific circumstances," says mortgage broker Warren O'Rourke, of Mortgage Choice.

Most lenders will lend up to 95 per cent of the total value of the home, ie, with a property worth $300,000, you'll need a deposit of $15,000. (This has to be genuine savings, however not a gift or something you won last night on the pokies and you'll have to show evidence of saving over at least a six-month period.) Some institutions, such as Bank West and Bank of Queensland, will lend money based on you having saved just 3 per cent of the value of your property (with the other 2 per cent coming from a gift from parents, say), but conditions are usually imposed.

Take into account other costs, such as bank charges, stamp duty and legal fees. Other issues to explore include "honeymoon rates" (where the interest rate is half or 1 per cent below the current variable rate for the first six to 12 months); additional repayments (some lenders charge penalties for additional repayments); fixed versus variable rates (blending rates allows the borrower to hedge their bets); redraw facilities, and offset accounts. A mortgage broker can help with this.

6. Buy with a friend or relative
While going in with a friend or family member might help you raise extra funds, it does have its risks. "Proceed with caution," says Chris Fitzpatrick, president of the Real Estate Institute of NSW. "It's important to realise that people's circumstances can change rapidly. When you're in a partnership it's harder to act quickly if you or someone else needs to sell the property, or if you want to up the mortgage, or if some maintenance needs doing." If you do intend to buy with someone else, Fitzpatrick recommends drafting a clear "entrance and exit plan", specifying how much each person contributed to the property, and what to do should one party want to bale out.

7. First-home owners grants
There are a couple of first-home owner benefit schemes in NSW that are worth investigating. There's the First Home Owners Grant Scheme, which offers a tax-free $7000 to first-home buyers. Requirements are straightforward: you can't have received the grant before; you must be at least 16 years old (and an Australian citizen); you can't have owned a residential property; and you must occupy the home as your principal place of residence within 12 months of settlement or construction. It's also worth examining the NSW Government's First Home Plus initiative, which provides substantial exemptions or concessions on stamp duty. For more information, call the NSW Government First Home Line on 1300 130 624.

8. First home parental bludge scheme
Your olds are a font of knowledge, wisdom and (with any luck), money. Hit 'em for a gift or loan.

9. Research the most affordable areas
Despite all the hand-wringing about Sydney's outrageous prices, some suburbs are, well, less outrageous than others. Those in the market for their first apartment should consider areas where the lower median price for apartments makes accessing the market easier. REI figures for the June quarter include such local government areas as Hawkesbury (where the median apartment price was $210,000), Blacktown ($224,500), Auburn ($231,000), Ashfield ($280,000), Kogarah ($285,000), Hurstville ($290,000), Parramatta ($291,000), Marrickville ($302,000), Rockdale ($310,000), and Botany ($340,000). If these areas don't appeal, try saving a bit longer and buying near or close to your preferred suburb. That way, over time, you can leap-frog your way into your ideal spot.

10. Don't procrastinate
With Sydney's latest property boom apparently at an end, it's tempting to assume that prices may plateau or even fall. This is only partly true, says Macquarie Bank property researcher Rod Cornish.

"Prices for generic apartments in the middle and outer-ring suburbs, such as Hurstville and Bankstown, will probably fall by about 10 per cent over the next 18 months, which makes it worth waiting if you're after one of these types of apartments." But Cornish says to be wary of this kind of property, as its capital growth potential is limited, and you don't want to forfeit potential resale value simply because you were keen to get your own place. His advice is "don't rush into anything, but don't procrastinate, either".

Finders Keepers' Lisa Bradley agrees. "It's a mistake to wait for that fabled `market correction'.

"On the whole, prices only level out, they never really come down," she says. "While you're sitting around waiting for prices to fall, the market could get out of reach again."

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