Guide To Buying A House In Perth

Guide To Buying A House In Perth

Jun 29, 2022 Are you planning to buy your first home in Perth, Western Australia? Believe it not! Understanding the real estate market and dealing with different property agents can leave you in nerve-racking situations. There is a challenging process ahead of you. The entire industry can be complicated and confusing for newcomers, and making the right home buying decision becomes difficult. However, people have been exploring the residential property market to find better and more reasonable options in metropolitan cities. Families and young couples are moving from small towns to the capital city of Western Australia with the help of trained Removalists Perth. They have been buying homes, high-rise apartments, cottages and other dwellings after thorough research. According to the Australian Bureau of Statistics, the total value of residential properties in Perth rose from 2.9 per cent to 15.7 % in December 2021. If you want to buy a house within your estimated budget, you need to under the process, financial complexities, components and influencing factors of buying a residential property. Here is a step-by-step guide to help you make a well-informed home-buying decision in Perth:

1. Decide How Much You Can Afford

This is the first step toward your home buying journey. The more you save for a deposit, the less amount you have to borrow from the financial institutes. So, before understanding the real estate market, you will need to evaluate how much you can arrange funds or borrow money from banks. The deposit is a percentage of the property price you pay in the initial process or before applying for the home loan. The Western Australian government also offer schemes and grants to first-time home buyers if they are running tight on a budget. But, still, it is good to calculate your expenses and determine how much you can spend when buying a new home. Remember that you will need around 10 to 20 per cent deposit- depending on your estimated budget, income and whether you have a guarantor or not. A lower deposit means you have to take out the lender’s mortgage insurance to protect the lender if you fail to deposit the amount.

2. Discover More about First Home Owner Grant

Are you buying a home for the first time? If yes, then you should know everything about The First Home Owner Grant (FHOG) offered by the government of Western Australia. It is designed to encourage first-time home buyers. However, this grant is available on newly built residential properties. It is not available for established dwellings. If you are a potential home buyer and eligible for the FHOG, you can apply for the $10,000 grant for a newly developed home in Perth and other regions of Western Australia. The basic eligibility criteria for the First time Home Grant is:

• You must be an Australian citizen
• Permanent resident
• You should above the age of 10
• If you are interested in buying newly built homes.

3. Know the Hidden Costs When Buying a Home

The chances are high that you will end up buying an expensive home if you don’t consider the hidden costs. So, here are some of the expenses you need to take an account when investing in the residential property market in Perth:

• Stamp duty is a tax imposed upon the state government of Perth. It is basically based on the property’s value. You can use the state’s stamp duty calculator to determine the exact amount. The best part is that you may get a reduced transfer duty rate if you qualify for the FHOG.
• Be ready for the legal fees. It is usually between $300 – $ 3000, depending on how many professionals you need.
• Processing Fees when applying for a home loan
• If you borrow funds more than 80 per cent of your home’s price, you might be charged lenders’ mortgage insurance. It is a one-off payment option that can go up to $10,000.
• New home inspection charges, which are around $300 to $400.
• Strata fees and council rates at the time of settlement. It is good to keep around $600 to $800 in advance.
• Do not forget your home relocation costs $200 to $400. Make sure you book affordable furniture removalists Perth at least 6 weeks prior to your final moving day.

4. Choose Your Home and Location

It is one of the important decisions to make because buying a new home is a life-long investment. Choosing the right location plays a vital role when purchasing your residential property for the first time. Whether you want to live close to the CBD or look for an affordable option, do proper property research. Do consider your estimated budget and personal preferences while making the decision. If you are relocating with your kids, look for a home somewhere close to private and public schools, playgrounds, public transport, healthcare facilities and much more. Do not forget to calculate the cost of relocation if you are moving to for the first time, especially to an outer suburb..

5. Consider Property Market Reports

An insight into the detailed property market will give you understanding and clarity when choosing a house in Perth. It is important to know the median price of a house or unit in a preferred location to make the right decision. According to stats, the median house price in the capital city of Western Australia is around $915,000, while the average unit and apartment price is $435,000. Look for affordable suburbs where you can buy a home within your estimated budget. If you want to enhance your standard of living, live close to the central business district or inner suburbs. You can contact the local real estate agent to find out some of the best options in the hotspots of Perth.

6. Property Inspections Are Important

Do not forget to inspect the property before signing the contract or papers. Check the condition of the property and other key aspects, such as:

• Is the property within your budget?
• Does it suit your lifestyle?
• Is it close to local amenities?
• Check the ceilings, water stains and mould
• Cracks in the walls
• Water pipe and drainage system
• External roof lines and gutters
• Pests
• Security System
• Electrical faults, etc

This will give you enough reason to negotiate the price of the property.

7. Understand the Contract of Sale

It is one of the pivotal documents when purchasing a home for the first time. It comprises each and every detail about the transaction, such as:

• Contact details of buyers, sellers and other involved parties
• Deposit details
• Final settlement date
• Other key conditions of the sale.

Note: It is good to hire a professional solicitor who can help you understand this complicated document and give you a hassle-free home buying experience.

8. Finalising the Sale

Auction

You must pay the deposit the same day you win the auction. So, make sure you have enough funds in your account.

Private Treaty

You can contact the best property agent who can help in negotiating the house price, sort out inspections and much more. It is important to sign each offer and counter offer, and the seller will decide whether he wants to accept or reject the offer. The prices will be negotiated until both parties reach the agreed amount. After this, the contracts of sale will be signed and exchanged.

9. Settling the Sale

This step involves finalising the last details, checking paperwork and monitoring financial resources. You can’t shift in until after your settlement date. It is usually between one month to three months after the period starts.

Endnote

This step-by-step guide will help you make the right home buying decision in Perth, Western Australia. If you are moving for the first time, hire certified removalists Perth and keep your belongings intact throughout the journey