Skip links

Is It A Good Time To Buy A House In Australia 2021?

As house prices rise across the country, getting into the property market becomes harder and harder. Still, to this day, most people would simply like to own their own home. However, determining the correct time to buy is not always that simple.

Here are some considerations you may want to take into account before buying your own home.

Considerations to make when buying a house

Table of Contents

1. Income

2. Rent or Buy

3. Look at your Deposit

4. Pre-approval

5. Credit Check


It could be suggested that your income is actually more important than the size of your deposit when it comes to buying a home.

Banks and lenders are very focused on your ability to service a loan, which is a product of how much you earn and how much you spend. If you don’t have an income, it is very difficult to get finance from a lender.

For that reason, you might want to wait until you’ve increased your income as you climb the ladder in your job or until your business has grown.

Rent or Buy

Just because your income isn’t where you want it to be right now doesn’t mean you can’t still invest. If you do have a deposit together, it is possible to rent where you want to live and buy elsewhere. This is commonly known as ‘rent-vesting’.

The benefit of rent-vesting is that the rental income you receive counts towards your serviceability.

Rent-vesting allows you to get on the property ladder sooner than you might have been able to otherwise. The added bonus is that it is often possible to rent in a far better location than you could otherwise afford to buy into.

That means you get to have the benefit of living in a great suburb without having to pay for it.

Look at your Deposit

If you are ready to buy your own home and you do have the income to buy now, but not the deposit, the good news is there are a number of options.

First home buyers are highly incentivised by most state governments and it’s likely you will be exempt from stamp duty, which makes saving a deposit far easier.

Similarly, lenders also have a range of loans that allow you to borrow 95% or more of the property value, with the help of a guarantor. These types of loan products are very helpful when you’re starting out.


When considering the first steps in the home-buying process, you need to know an estimate of how much money you can afford to take out in a loan from a bank. This is known as being pre-approved.

Getting conditionally pre-approved will help to understand how much you can borrow from your lender. So, you can begin your house hunting as soon as possible.

Credit Check

One of the most important things you need to have is a solid credit rating. If you’re young or still living at home, you might have never even had credit before.

A credit score is a track record of how you’ve dealt with debt in the past. Lenders want to make sure you are likely to pay it back.

If you’ve had credit in the past and managed it poorly, then a lender won’t look too kindly at your application. Get your credit score in order before you look to buy a home.

By speaking to our team of mortgage specialists at Abacus Finance we can assess your financial situation and help recommend a solution that helps meet your needs. Contact us today now!

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.