The time is right for first homebuyers

There’s no denying it’s a great time to buy in Western Australia. If you’re currently renting but keen to get into property ownership, the current market conditions provide plenty of opportunity for you to secure your first home.

Perth is in a unique position, compared to cities on the East Coast like Sydney and Melbourne, with housing affordability continuing to improve, making homeownership more accessible.

reiwa.com data from the December 2019 quarter showed a significant number of sales transactions were below $350,000, which indicates an active first homebuyer market.

When you combine market conditions with the Federal Government’s First Homebuyer Deposit Scheme, which acts as a guarantor so first homebuyers can purchase a home with a deposit of five per cent without mortgage insurance, you are in a good position to get into 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 in, will work to your advantage.

When researching, think beyond your short-term plans. You might live in your first home for many years, so consider the fact you might need more room down the track. Another option to consider is to build a house or buy an off-the-plan apartment, which both have stamp duty concessions for first home buyers.

A savings plan is critical. You want to have a solid plan in place so you can establish a reasonable deposit. Remember, it’s not just the cost of the house you have to consider. There will also be settlement costs, moving costs, and you may want to set aside some funds to acquire new furniture, renovate or improve the property.

The additional bonus of saving a higher deposit is you’ll avoid or reduce the amount of lenders mortgage insurance you have to pay which can be a surprisingly high sum. First homebuyers also have the option of a Keystart home loan, which is a government agency designed to help first homebuyers with low deposits get into the market.

If you need more help, local real estate agents are a great source of information. If you are short on time or don’t know where to start, then a REIWA buyer’s agent can find you the dream home you are looking for.