Professionals Real Estate In recent years, affordability has been a major barrier to first home buyers entering the Perth property market. However, the recent surge in the number of properties for sale in Perth has resulted in more affordable house prices, especially at the lower end of the property market. In areas such as Armadale and Rockingham for example, there is now a growing number of properties being sold for under $300,000 which is fantastic value for money.
The best time to purchase your first home is when most people are absent from the market rather than when buyer activity is peaking. Current market conditions make it an ideal time to buy a first home because there are a limited number of property buyers active in the real estate market and as a result home sellers have to be more competitive with their pricing. With inflation now under control, the outlook for interest rates now appears to be more stable and this should give first home buyers greater confidence about entering the established housing market.
If you are considering buying a first home then you should take note of the following points:
- Many first home buyers make the mistake of buying a family home, similar to their parent’s, which is not suited to their needs. It is important not to financially overextend yourself by purchasing a home based on an emotional decision rather than their specific needs.
- It is important to remember a first home should be a stepping stone to a better home in future years. First home buyers should focus on the potential capital growth of the property as this will create equity in the property to upgrade to a better property at a later stage.
- A good tip is to check the annual average capital growth rates of the suburb for the last 10 years. This length of time will take into account booms and busts in the housing market and give you a better understanding of the capital growth potential of the property.
- Choose a suburb that has a lot of properties for sale. This will give you a stronger negotiation position with the home seller who is competing with other home owners in the area to sell their property.
- Families are getting smaller so it is a good idea to focus on a smaller, well located property rather than a larger home in a more remote location.
- Consider older style apartments and townhouses in a well-located position. These are typically more affordable and can be modernised at a lower cost than buying a new property that might be located in a more inferior position.
- Car parking and security features are very important when buying a home because more people are demanding higher levels of security and these features can impact on the resale value of your property.
- If you are considering buying a strata unit, choose a complex that has an active strata management company that ensures the overall presentation of the complex is maintained. This will enhance the resale price of the unit.
- It is important to stay in close contact with your real estate agent and clearly express your needs. You’ll want to be notified as soon as a home that fits your criteria goes on the market.
- Also keep in mind that there’s no such thing as the “perfect” home. Instead, set priorities. Determine what you’re willing to sacrifice, especially if you have a limited budget.
Please click here to view the pdf version of this article
