STAY UP TO DATE WITH LOCAL REAL ESTATE
There’s no denying it’s a great time to buy in WA.
If you’re renting but keen to get into property ownership, the current market conditions provide plenty of opportunity for you to secure your first abode.
Reiwa.com data from the June 2016 quarter showed the bulk of sales transactions were between $350,000 and $550,000, which indicates an active first-homebuyer market.
When you combine market conditions with the Barnett Government’s transfer duty exemptions for first-homebuyers paying up to $430,000, you are in a good position to get into the market.
Know the market
Once you’ve made the decision to buy, it’s important to do your research.
Having a good understanding of how the market is behaving, especially in the areas you are interested in buying, will work to your advantage.
Learn more about what an area offers you in terms of lifestyle, what properties are typical of the area, what the median house price is and the potential for capital growth.
When researching, think beyond your short-term plans.
You might live in your first home for a number of years so consider the fact you might need more room down the track.
Savings and loans
A savings plan is critical when planning to buy a home.
You want to have a solid savings plan in place so you can establish a substantial deposit.
Ideally, you’ll need to have between 10 to 20 per cent of the purchase price as a deposit in order to acquire the necessary borrowings to buy.
The additional bonus of saving a deposit of 20 per cent is that you’ll avoid paying lenders mortgage insurance which can be a surprisingly high sum.
The amount you can borrow from a bank or other financial institution will depend on a number of factors like: Income, savings and assets. Existing debts and financial commitments. Credit history. Loan type. Employment history. It helps to be prepared so consider applying for pre-approval of your home loan.
This will put you in a much stronger position and you’ll be more aware of your limitations when making an offer.