PROP­ERTY

STAY UP TO DATE WITH LO­CAL REAL ES­TATE

Pilbara News - - Lifestyle - Hay­den Groves Hay­den Groves is the pres­i­dent of the Real Es­tate In­sti­tute of Western Aus­tralia.

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.

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