One of the biggest questions for first home buyers is whether to enter the market now or wait. With fluctuating property prices, changing interest rates, and evolving government incentives, it’s natural to feel uncertain. However, rather than trying to predict the perfect time, it’s essential to assess your personal financial situation and long-term goals. Here are three key factors to consider:
1. Your Purchasing Power Now May Be Better Than Later Against a Strong Market
First home buyers currently have access to incentives that make entering the market more achievable, including the First Home Guarantee, which allows eligible buyers to purchase with as little as a 5% deposit and no Lenders Mortgage Insurance (LMI). While this opportunity is available now, the market may shift over the next 6 to 9 months. If property prices are projected to rise by 6-8%, the home you’re considering today could cost significantly more in the near future. This means you’ll need a larger deposit and a bigger loan, making affordability more challenging. Acting sooner rather than later may allow you to secure a property before further price increases.
2. Your Personal Circumstances Need to Be a Priority
Buying a home should be based on your personal and financial readiness, not pressure from family or friends. It’s crucial to plan your home purchase with a clear understanding of your objectives. Ask yourself:
Will my mortgage repayments be similar to my current rent?
How will additional costs such as council rates, maintenance, and utilities affect my budget?
Does this property align with my long-term financial and lifestyle goals?
Is this home in a suitable location based on work, family needs, and school zones?
Making an informed decision ensures that your first property is not just a purchase but a stepping stone toward future financial stability.
3. Timing the Market is Difficult
Many buyers hold off on purchasing in hopes of finding the “perfect” market condition. However, trying to perfectly time the market often leads to analysis paralysis—where you overthink and delay taking action. The reality is that property prices fluctuate, and short-term movements shouldn’t overshadow long-term investment potential.
Consider this: if you purchase now and the market rises by 4-6%, you’ll feel great about your decision. But if prices drop by the same percentage, you might experience buyer’s remorse. However, history shows that real estate tends to appreciate over time. According to PropTrack’s Market Insight, in May 2023, the median house price nationally had doubled in 185 months (15.4 years), while the median unit price took 213 months (17.8 years) to double.
If your financial position allows it, buying now can set you up for long-term equity growth and stability rather than waiting indefinitely for the “perfect” time.
Final Thoughts
Instead of focusing solely on market timing, consider your financial position, future goals, and available incentives. If you’re unsure about your borrowing capacity or what options are best for you, working with a mortgage broker can help you navigate the process. A Home Buying Plan can also help you map out your personal timeline and determine how close you are to owning your first home. You might be closer than you think!
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