This is one of the top questions we’re fielding from clients at the moment. The ‘right time’ to buy enormously depends on who you are, what you’re trying to achieve, and where your finances sit right now.
If you’ve been asking yourself the same question, here we walk through some of the key considerations for first home buyers and investors alike, to help you arrive at the right answer for you.
For first home buyers
The case for buying now
For many first home buyers, the biggest risk isn’t overpaying for a property. It’s waiting too long to buy. Australian property prices have historically trended upward over the long term and as the investment experts like to say, “time in the market beats timing the market.”
If you’ve saved your deposit, have stable employment and are at the stage in your life where you want a place of your own, then the conditions for buying are arguably already here.
Saving a larger deposit can help you to reach a higher price point in the future. However, you might also find yourself chasing property prices. For example, you might work hard to increase your deposit, but can’t actually purchase a better quality property at the time you go to buy, because property prices have increased at the same time too.
Government schemes have improved access
The 5% Deposit Guarantee Scheme (expanded in October 2025) allows eligible first home buyers to purchase with as little as 5% deposit and not incur the Lenders Mortgage Insurance (LMI) that would typically apply.
If you haven’t saved a 20% deposit, the scheme can help you to save thousands of dollars in LMI (and reduce your interest costs),but also bring forward your buying timeline.
Depending on how you purchase your property, there can be risks when taking out a high Loan to Value Ratio (LVR) loan, which you will want to consider here.
If you’re not borrowing more than you can afford though, the 5% Deposit scheme can be a great way to help you get into the market sooner than you thought was possible.
When it might make sense to wait
If your employment situation is uncertain, you’re carrying high levels of personal debt, and/or your deposit is thin, it could be worth taking some time to strengthen your position before committing to a mortgage.
Regardless of whether you’re wanting to purchase now or later in the year, it’s always good to get an idea of where your borrowing capacity sits now. Because if you need to take steps to improve your financial position (or cut down on some of those discretionary expenses for example), you will have time to do this prior to lodging a pre-approval.
For property investors
Consider yield and growth
Many investors focus almost entirely on capital growth potential, but in the current environment, you might want to consider rental yield too.
Properties that deliver a decent rental return tend to be easier to hold through market fluctuations and rate increases because a positively geared or neutral property is far less stressful than one that requires cash injections from you each month.
Equity plays
If you already own a property that has increased in value, now could be a good time to review your equity position.
Given the growth we’ve seen the property market in recent years, many homeowners are sitting on more equity than they realise. This equity could be unlocked to help your overall wealth – by purchasing additional properties or even investment into shares for example.
When it might make sense to wait
If you’ve recently taken on significant personal debt, your cash flow is stretched and/or you don’t have a clear investment strategy, then patience is sensible.
*Before you make any investment purchasing decisions, we recommend you speak with an accountant.
The broader picture
Property forecasters have broadly predicted price growth across most Australian capital cities for 2026, with continued supply shortfall and stable demand being the key drivers.
Of course, we’d be remiss not to mention what’s happening on the global stage, and more locally, potential changes to negative gearing and CGT legislation. Until we know what plays out, what the changes could be and what timeframe we’re looking at, it’s difficult to ascertain how these could impact property prices and market sentiment more broadly.
So, is now the right time for *you* to buy?
Here are the questions we’d encourage you to sit with:
- Is your financial position stable? Steady income, manageable existing debt, and a solid deposit are the building blocks.
- Have you modelled your repayments under different rate scenarios, not just today’s rates?
- Have you spoken to us about your actual borrowing capacity — not just the online calculator estimate?
- For investors: have you stress-tested the yield? What happens if the property sits vacant for a month or two?
- Are you buying for the right reasons — a home to live in, a long-term investment —rather than FOMO?
Whilst there’s rarely a perfect moment to buy, there are certainly better and worse times as individuals. And getting super clear on your personal position is the best place to start!
If you would like to understand your own borrowing capacity so you can make a decision as to whether now is the right time for you to purchase, we’d be happy to help.
You can reach out to our team here.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
