There is usually a lot of uncertainty in the Perth and WA settlements market, however, at the moment, things are looking up for buyers around Perth, with low interest rates, first home buyer incentives and even more expected price growth to come.
Whether you’re a first-time buyer, looking to move or thinking of a future with an investment property – you’ve chosen a fantastic time to be in the market. A stable job and income is about the only thing you need to make your move on the property scene. Current interest rates are hitting lows not seen before for this generation of homebuyers. This, coupled with lower house prices in both the Perth metropolitan area and regional WA, means more and more West Australians now have the opportunity to own their own home.
To make buying a home even more accessible for first time buyers, the West Australian government offers a $10,000 - $15,000 First Home Owners Grant to those purchasing new builds or “substantially renovated” homes valued between $750,000 and $1 million. Furthermore, first time buyers are also offered stamp duty concessions on all properties with full exemption up to $430,000 and a sliding scale between $431,000 and $530,000. In any case, once financing has been approved, smart buyers should start looking at Perth conveyancing agents to ensure they have the smoothest settlement possible.
WA settlements will also be aided by changes to the Keystart program. The program is a loan assistance scheme, which aims to help those who may normally struggle to obtain a home loan, such as public housing tenants or those with a disability. In 2017, the income limit for the Perth metropolitan area was increased by $20,000 - literally opening the door on becoming a homeowner for thousands of West Australians.
A slow market has seen buyer incentives extend beyond government grants and into freebies such as iPads and even cars. In 2017 Perth buyers were offered 1 million frequent flyer points (equivalent to three business-class return trips to Paris) by a developer looking to sell apartments in Claremont and North Fremantle. Given that many first homebuyers sacrifice certain luxury goods and services in their first year as a homeowner to purchase their dream home, these incentives can be an excellent compromise.
If you’re considering purchasing your first home, there are some pivotal factors you must consider to make the best possible choice for you and your future. Consider your lifestyle, including your day-to-day life and your plans for the future. Try thinking a few years ahead; will you need more or less space? Will being close to work, family or recreational activities be important?
You’ll need to figure out how much you can afford to repay on your house. Putting down as much of a deposit as you can, is highly advisable, as you’ll pay interest on everything you borrow. For most people, a 20% deposit will be the minimum. Below this point, your bank or lender is likely to charge you lenders’ mortgage insurance or a low deposit premium.
Be realistic with your expectations. While it’s a nice idea to go straight into your dream home, that’s not the case for most people. Remember, you’ll likely own more than one home in your life; your first purchase isn’t the be all and end all.
Finally, take your time and do thorough research before you make an offer. Everything from the location to the previous sale price, to the zoning of the land, are important to know. It is also smart to keep an eye on the local paper of the area you’re looking to buy in so you’re aware of any common or recurring issues.
Once you’ve considered your lifestyle, your budget, and done your research – you are ready to purchase your first WA settlements property! Now is a great time, and while property investment may seem like a daunting market, Crescent Conveyancers are with you every step of the way. Contact us today!