If you are planning on turning small diameters (5 mm is fairly small) consider the max spindle speed of the lathe also. Tom's Techniques (great site, Tom Griffin is an excellent teacher) recommends spindle speeds of " 400 / work diameter " for plain carbon steel. Math works out to around 2000 RPM's for turning a 5 mm diameter. You'll be hard pressed to find a 20" lathe (for example) that spins up to that speed. In fact, a lot of 12" gear head lathes only go up to 1400 RPM's. You can do your work at a lower speed, but the surface feet per minute of material removal will not be optimal. We're pretty much all hobby machinist's here, not production shops, so optimal goes out the window and we work with what we have. The math on drilling an 1/8" hole in brass works out to around 8000 RPM's, my highest spindle speed lathe tops out at 2000 and that works fine.
Like mentioned above and on many other threads on this site, look for the largest lathe you can afford that fits in your shop. If you're buying used iron, if everything is working you'll be able to get your money out of the machine if you decide to upgrade down the road. An in great shape, well-tooled South Bend heavy 10" from 1954 has depreciated to it's bottom dollar so the only thing you're losing is the interest on your money if it had been setting in the bank. Of course you'd be missing out on all of the fun running the machine! Happy Hunting!
Bruce