Should You Wait Another Year to Buy Your First Home?

For many first-home buyers, the default plan is simple:

“Let’s just wait another year and see what happens.”

It sounds responsible. Sensible. Safe.

But waiting isn’t neutral. It carries a cost and that cost is often underestimated.

This isn’t about rushing into a purchase. It’s about understanding what delay actually means financially.

1. Price Growth = Bigger Deposit

If property prices rise even modestly, your required deposit rises with them.

For example:

• Target property: $800,000
• Deposit at 10%: $80,000

If prices increase 5% next year:

• New price: $840,000
• New 10% deposit: 84,000

You now need an extra $4,000 just to stand still.

Waiting doesn’t pause the market. It continues moving.

2. Interest Rates Don’t Move in Isolation

Many buyers delay hoping rates will drop.

But:

• If rates rise = repayments increase.
• If rates fall = buyer demand often increases, which can push prices higher.

Lower rates can create more competition. More competition can lift values. Which again leads to… a bigger deposit.

The market adjusts quickly.

3. Rent Is Still a Cost

While you’re waiting, you’re paying rent.

That money:

• Doesn’t reduce your future mortgage.
• Doesn’t build equity.
• Doesn’t benefit from capital growth.

Every year you delay is another year not building ownership.

4. Time in the Market Matters

Property growth compounds over time.

Even steady growth of 4–6% per year becomes significant over a decade. The earlier you enter the market, the longer compounding works in your favour.

Waiting delays that clock from starting.

5. Waiting Feels Safe – But It’s Not Risk-Free

There’s a perception that “doing nothing” reduces risk.

In reality:

• Prices may rise.
• Lending rules may tighten.
• Your borrowing capacity may shift.
• Personal circumstances may change.

Waiting is still a decision. It just feels passive.

Buying Isn’t About Guessing. It’s About Numbers.

This isn’t saying everyone should rush out and buy.

Sometimes waiting makes sense.

But that decision should be based on:

• Your deposit position
• Your borrowing capacity
• Your repayment comfort
• Your
  long-term plans

When you understand your numbers properly, the path becomes clearer.

Next Step

If you’re weighing up whether to buy now or next year, let’s run the numbers properly and build a plan around your situation.

Reach out to our team for a confidential chat.

And watch the video from our Director, Mils Muliaina, where he breaks down the real pros and cons of waiting versus acting now.

Clarity beats uncertainty. Let’s make a decision based on facts.