Having a deposit saved is one of the clearest signs you are ready to buy. Most lenders want at least 5% of the purchase price, though saving 20% means you avoid paying Lenders Mortgage Insurance (LMI), which can add thousands to your upfront costs.

If you do not yet have a 20% deposit, that does not mean you cannot buy. Low-deposit home loans are available for borrowers who meet income and credit criteria. First home buyer schemes can also reduce the deposit threshold in some states.

Along with your deposit, you need to budget for purchase costs: stamp duty, conveyancing fees, building and pest inspections and loan establishment fees. Depending on your state, these can add 3-5% to the total cost of buying. Make sure your savings cover both your deposit and these additional expenses.

A guarantor arrangement is another option if your deposit is short. Read our guide on guarantor home loans to understand how a family member can help you get into the market sooner.

Renting suits people who move frequently or are not yet sure where they want to plant roots. If that describes you, buying may not be the right move yet. But if you are ready to settle in a suburb or region for at least five to seven years, buying starts to make more financial sense.

Owning a property gives you stability and security that renting cannot. You are not subject to rent increases or the risk of your landlord selling the property. You can make changes, renovate, and build equity over time.

The longer you own, the more the costs of buying are spread out and the more equity you build. Buying and selling within a short timeframe rarely works in your favour once you factor in stamp duty and agent fees.

Owning a home comes with costs that renters do not face. Council rates, water rates, building insurance, maintenance and strata levies (for apartments) all add to your annual budget. If you have thought through these costs and can absorb them without financial strain, that is a strong sign you are ready.

A good rule of thumb is to set aside 1% of the property’s value each year for maintenance. On a $700,000 home, that is $7,000 per year, or just under $600 per month. This does not mean you will spend that every year, but it gives you a buffer for unexpected repairs.

If you are not sure how your budget stacks up once you add these costs on top of mortgage repayments, our loan repayment calculator can help you model different scenarios before you commit.

Australia’s rental market remains under pressure. Vacancy rates in major cities are historically low, and rents have been rising faster than wages in many areas. This is pushing more renters to consider buying as mortgage repayments in some markets become comparable to, or cheaper than, renting equivalent properties.

For first home buyers who tick the financial readiness boxes, periods of relative market stability or softness can be a genuine opportunity. You may face less competition from investors and upgraders, and sellers may be more willing to negotiate.

Government schemes and grants are also available to eligible first home buyers in most states. These include stamp duty concessions, first home buyer grants and shared equity schemes. A broker can confirm which you qualify for and factor them into your deposit plan.

The best time to buy is when you are personally ready, not when the market is perfect. Trying to time the market rarely works. Focus on your own financial position and goals first.