Your First Time Home Buyer Guide in Perth
Are you a first time home buyer overwhelmed by the Perth property market maze?
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Mastering the Perth Property Market: A Guide for New Buyers
Before you start your home buying journey, it’s important to have a good understanding of the real estate market in Perth. This will help you make informed decisions and avoid any surprises along the way.
Perth’s competitive property Market
by REIWA (Perth Market Insights)
Perth’s real estate market has been over the last 24 months, with an increase in both property prices and sales volume. Perth’s median house price is $600,000. People are selling houses in Perth within a span of 8 days. This information is from February 2024 and comes from REIWA.
Sellers may appear to have the advantage, but there are still plenty of opportunities for first-time home buyers.
Choosing the Right Perth Neighbourhood: Insider Tips for First-Time Buyers
Compared to other major cities in Australia, Perth offers more affordable property prices. This is a great place for new investors or those wanting to grow their property collection without spending too much money. Additionally, with the current low interest rates, now is a great time to invest in Perth real estate.
Potential for Capital Growth
Perth is a diverse city with many different neighbourhoods to choose from. Consider important factors when choosing where to buy your first home. Proximity of the location to your workplace, educational institutions, and retail establishments are all key factors.
Some popular neighbourhoods for first-time home buyers in Perth include:
- Subiaco: A lively area with a mix of homes and eateries, popular for its cafes and restaurants.
- Fremantle: A historic port city with a laid-back vibe, known for its markets, street art, and beautiful beaches.
- Mount Lawley: A suburb known for its blend of old and new homes, as well as its vibrant bar and restaurant scene. It’s a favoured location because of its diverse range of architectural designs.
Tips for First Time Home Buyers in Perth
Having gained a deeper insight into Perth’s real estate market, let’s explore some advice for those buying a home for the first time.
Get Your Finances in Order
Securing your financial footing is crucial before diving into the property market. Take the first step towards homeownership by obtaining a pre-approval for a mortgage. This will help you determine the amount you can spend on purchasing your home.
Work with a Real Estate Agent
Navigating the real estate market can be overwhelming, especially for first-time home buyers. Having a reliable real estate agent with you is crucial when looking for the right home. They can guide you through the process.
A good real estate agent is familiar with the local market. They can help you negotiate a fair price for your dream home.
Consider Your Long-Term Goals
When you apply for a home, it’s important to consider your long-term goals. Are you considering starting a family? Do you have a preference for living in an urban or suburban location? These factors can influence the type of property you should be looking for.
Assessing the potential for growth in the area is essential when you’re contemplating to buy. This will ensure that your investment will continue to grow in value over time.
Unlocking Government Grants: Your first time home buyer advantages in WA
Eligible first home buyers in Western Australia can receive help to purchase their home with state government grants and support programs. Here’s a brief rundown:
First Home Owner Grant (FHOG)
The First Home Owner Grant (FHOG) is a one-time financial assistance program for first-time homebuyers in Australia. If you’re buying or building your first home, you could receive up to $10,000 towards your purchase, depending on your state’s guidelines.
Home Buyers Assistance Account (HBAA)
In Western Australia, the Home Buyers Assistance Account (HBAA) gives $2,000 to first-time home buyers to help with buying a home. This money is for extra costs when buying a home from a licensed real estate agent.
Stamp Duty Concession for First Home Buyers
The First Home Owner Rate (FHOR) concession lowers stamp duty for first home buyers, making buying your dream home more affordable.
Shared Home Ownership Scheme
The Shared Home Ownership Scheme helps homebuyers by reducing the purchase price through co-ownership with the government. It also offers support to those who require assistance.
First Home Guarantee Scheme
The First Home Guarantee program lets first-time home buyers buy a house with only a 5% down payment. The government will guarantee up to 15% of the loan. This home loan guarantee scheme helps you buy a home without paying for lenders mortgage insurance (LMI). Combining it with other grants and discounts to make owning a home more affordable.
Securing Your First Home Loan in Perth: Steps to Success
After you have discovered the home of your dreams, the next step is to obtain a mortgage. Here’s a breakdown of the mortgage process for first-time home buyers in Perth.
Pre-Approval
Before you start house hunting, it’s important to get pre-approved for a mortgage. This will give you a better idea of your borrowing power and help you narrow down your search.
To get pre-approved, you’ll need to provide your mortgage broker with information about your income, assets, and debts. They will then determine how your are able to borrow based on your financial situation.
Selecting Your Perfect Mortgage
Selecting the right mortgage is crucial for first-time homebuyers in Perth. Explore various options to find the best fit for your needs and financial situation.
Common first time home buyer mortgage types include:
- Fixed Rate Home Loans: Offers stability of loan repayments, with a fixed interest rate for 1 to 5 years.
- Variable Rate Home Loans: Flexible options with interest rates that adjust based on market conditions.
- Construction Loans: Provide funds in stages for building projects, aiding cash flow management.
- Guarantor Loans: Ideal for buyers with small deposits, offering added security with a guarantor.
Closing the Deal
After locating your ideal home and finalising your mortgage, the next step is to complete the transaction. This entails signing the sales agreement and submitting the required deposit.
Before signing, it’s crucial to have a conveyancer or lawyer review the contract to make sure everything is correct. Additionally, your real estate agent can assist you throughout this process and address any inquiries you may have.
ScaleMortgage – Your Trusted Mortgage Broker in Perth
ScaleMortgage – Your Trusted Mortgage Broker in Perth, we help first time home buyers in Perth navigate the path to owning a home. Our experts will find the right mortgage for you. We offer great service and expert advice to make getting a mortgage easy and informed, with no fee charged.
Benefits of Choosing ScaleMortgage:
Best in Class Service: At ScaleMortgage, we offer outstanding service. Our expert brokers understand your financial goals and help you find the right mortgage options.
Extensive Lender Network: Access over 1000 loan options and 20+ Lenders, we have the right loan for your needs.
Streamlined Process: We streamline the mortgage process for our clients, making it efficient and hassle-free. From pre-approval to closing the deal, ScaleMortgage ensures a smooth journey towards homeownership.
Financial Guidance: ScaleMortgage provides expert financial guidance to help first-time home buyers make informed decisions. Our team offers valuable insights into mortgage terms, interest rates, and repayment options.
FAQ
In Western Australia, eligible first-time homebuyers can receive a First Home Owner Grant (FHOG) of $10,000. This grant can help you buy or build a new home, including off-the-plan purchases and newly built homes. The FHOG aims to assist first-time buyers in entering the housing market.
In Western Australia, eligible first-time homebuyers can receive a First Home Owner Grant (FHOG) of $10,000. This grant can help you buy or build a new home, including off-the-plan purchases and newly built homes. The FHOG aims to assist first-time buyers in entering the housing market.
First home buyers in Western Australia might not have to pay stamp duty if they meet certain criteria. First-time homebuyers are exempt from stamp duty for properties priced below $430,000. Properties priced from $430,000 to $530,000 receive a reduced rate. These conditions aim to make homeownership more accessible for first-time purchasers.
Conclusion
Purchasing your initial property in Perth can be a thrilling and fulfilling journey. To realise your aspiration of home ownership, it’s crucial to first familiarise yourself with the real estate market. Consider seeking the help of a reliable real estate agent and mortgage broker.
Lastly, prudently handle your financial resources to make your dream come true. Contemplate your long-term objectives and steer clear of errors to locate your ideal home in Perth. Take pleasure in the adventure of hunting for your new residence!
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Thomas Makin
Thomas Makin is the Principal Mortgage Broker and Co-Founder of Scale Mortgage. Holding a Diploma in Finance and Mortgage Broking Management, he is also an accredited member of the Mortgage & Finance Association of Australia (MFAA). Thomas is recognized for his expertise in guiding homebuyers and investors with tailored mortgage solutions across Australia, demonstrating a commitment to professionalism and high industry standards.
