Buying your first home is one of life’s biggest milestones. It’s the thrill of achieving that dream, the satisfaction of saying goodbye to rent, and the chance to create a space that is truly your own.
This Spring, the Perth property market is buzzing with activity. Homes are selling quickly and strong price growth is the new normal.
While a fast market can seem intimidating, it absolutely does not mean you should be deterred. In fact, people just like you are securing their first homes every single day.
As REIWA President Suzanne Brown said, preparation and flexibility are the keys to success. This guide breaks down the expert advice into three simple, actionable steps to turn this busy market into your home-buying opportunity.
1. Start with Your Budget, Not a ‘For Sale’ Sign
Before you even open a property search website, the very first step is to get your finances in order. This is the foundation of your entire home-buying journey.
- Know your numbers: Look at your deposit, your budget, and your capacity to service a loan.
- Don’t forget the ‘other’ costs: Factor in associated costs like stamp duty, moving fees, pest and building inspections, and any lender fees.
- Get pre-approval: Go to your lender and get a written pre-approval for your loan.
As Suzanne Brown notes, pre-approval is crucial:
“It gives you both peace of mind when searching and provides certainty for you and the seller. When you are ready to make an offer, pre-approval shows the selling agent you are serious and ready to buy.”
2. Know Your Concessions (It Could Save You Thousands)
This is the stage where you should look carefully at all the concessions and first home buyer schemes available. This can directly influence where you look, the type of property you buy, and the price you can afford.
- WA Stamp Duty Exemption: For established homes, the first home buyer stamp duty exemption cuts out at a purchase price of $500,000, with concessions phasing out at $750,000.
- Off-the-Plan Duty Concession: If you purchase a new multi-residential strata development “off-the-plan,” you may pay no stamp duty up to $750,000. That’s a potential saving of around $30,000.
- First Home Owner Grant (FHOG): This $10,000 grant is available for eligible first home buyers who choose to build a new home.
These schemes might make you consider a new build in an outer suburb (for the FHOG) or focus on an off-the-plan apartment in an established area.
3. Be Flexible: Think Location and Property Type
Once your finances are ready, it’s time to start the search. You may see that Perth’s median house price is around $810,000, but don’t let that figure discourage you.
As Ms. Brown points out, “It is important to remember that the median is the middle and 50 per cent of sales will be below this price.”
Affordable options are still available. The key is to decide what is most important to you and be open-minded.
- Want to live close to the city? Consider units and apartments. For example, the median two-bedroom unit price in Bayswater is $529,000, and in Victoria Park, it’s $475,000.
- Want a house in an established suburb? Look for smaller, established homes in areas like Morley, Nollamara, Balcatta, Rivervale, and Willagee, which still have options below the Perth median.
- Want a new house? A house and land package in a growth corridor could be your best fit. These are further from the city but offer modern homes, often at or below the median price.
Our Final Advice: Stay Positive
The most important advice is to stay positive. Even if you miss out on a property or two, remember there will always be another opportunity.
The market has highs and lows, but people are always buying and selling. With a solid financial plan and a flexible search strategy, you will find your new home.
Ready to Take the First Step?
The market is moving fast, but you don’t have to navigate it alone. Our team specialises in helping first-home buyers get prepared, find the right opportunities, and make their home ownership dream a reality.
Contact us today for a no-obligation chat about your first home.