First Home Buyers: Should You Buy Now or Wait for 2026?

There’s a lot of noise going around right now with the government announcing some big changes to the First Home Guarantee scheme from January 2026. If you're a first home buyer, you might be wondering “Should I buy now, or hang back and wait for the new rules to kick in?”

Let’s break it down....

What's Changing?

From 1 January 2026, the First Home Guarantee scheme is set to become a whole lot more generous:

• The price cap in Perth will jump to $850,000 (currently $600,000)

• Income caps will be scrapped nationally (currently $125k for singles / $200k for couples)

• No limit on scheme places (currently capped annually)

  
  

Sounds pretty appealing, right?

Is now the right time to celebrate your First Home Purchase?

So… why buy now?

Look, I get it. Waiting seems like the smart move. You might think you'll get more bang for your buck, less red tape, and potentially better homes to choose from.

But have you thought about this?

1. You’ll be competing with everyone in 2026

When the floodgates open, they’ll really open. More buyers, bigger budgets, and more competition will emerge. This is especially true in that $700k–$850k sweet spot. Prices could rise quickly, and you might find yourself priced out of the market you're waiting for.

2. Less pressure on the market right now

If you're ready to buy today, you’ve actually got a golden opportunity. There’s less first home buyer competition. Sellers are more negotiable, and you're not racing against the crowd.

3. Your personal timeline matters more than government policy

Got a lease ending? Want to start a family? Sick of rent inspections? Buying a home isn’t just about timing the market; it’s about timing your life. If it makes sense for you to buy now, the scheme shouldn't be the only factor in your decision.

4. Most buyers aren't going straight to $850k anyway

Let’s be honest, not every first home buyer is shooting for an $800k-plus property. Plenty of clients I help are still comfortably looking in the $500k–$600k range, where the current scheme still applies. If that's you, there’s no need to wait.

5. Get in now and ride the wave of equity growth

We all know what happens when demand goes up: prices follow. Come January, with more buyers entering the market (many with bigger borrowing power), property values in that $650k–$850k bracket are likely to climb. If you’ve already bought in before the rush, you could be sitting on some decent equity growth without lifting a finger. Even a $20k–$40k bump in value could give you better refinancing options down the line. It could also provide that extra buffer for renovations, investments, or just peace of mind. Buying now isn’t just about avoiding the crowd; it’s about getting ahead of it.

The Importance of Timing

Timing is crucial in real estate. The market can shift rapidly. If you wait too long, you might miss out on the perfect opportunity. The right home can make all the difference in your buying experience.

Final Thoughts

Yes, the upcoming changes are exciting. But don’t fall into the trap of waiting just because it “might be better” in six months. Markets shift, policies evolve, and competition will be fierce in 2026. If you're in a position to buy now, with the right home, the right loan, and the right advice, it could absolutely be the right time.

Not sure where you stand or what your options are? Let's have a chat and put a plan together that works for you.

---wix---