How To Choose A Block Of Land In Perth
You have just arrived at a new land estate with the intention of buying a block on which you will build your future dream home. How will you pick the best block? At the moment there is a huge choice of land estates in Perth.
The decision can be hard to make, especially if there is little or no difference in price. Data by the Real Estate Institute of Western Australia indicates there are more than 2,000 blocks of land currently on the metropolitan Perth real estate market.
If you are in this situation, it’s important not to get flustered and just think about the best site characteristics to suit your building plans.
Imagine the likely house design and its orientation with the block. Think about energy efficiency and try and maximize the areas which face north to receive the winter sun, and conversely minimize the exposed window areas facing west into the summer sun.
Ask the developer or local Council about the minimum distance required between the front of the house and the road and the distance required between the house and side fences. These are known as ‘setbacks’. If you have bought a block and find that the setbacks don’t suit your preferred design you’ll have to change it or possibly chance your luck and seek special consideration from the Council.
What might you see out of your new windows? If you are buying into a production home area make sure you have a good level of privacy that meets your needs.
Does anything have the potential to block your views? What are the builder’s plans for homes around you? Is any urban construction planned by the Council which might later be visible from your site?
How is the lot shaped? How best will your home of choice fit on it? It may be worthwhile to inspect the block with your preferred builder to advise on the suitability of the block for your home design.
If the block slopes, calculate the extra cost that might be involved to level it. Even blocks that look flat can sometimes have a slight sloping that requires some site works.
How will the area drain? If it’s in a low lying area check that the available draining system will prevent flooding and consider any possible run-off water from adjoining blocks on higher ground.
Ask about easements for access, utilities and any other purposes that created their existence. In most cases, you are not permitted to build any structure over an easement. This may include pools, sheds or future extensions.
Finally, if you are lucky enough to be buying a block near any of Perth’s beach areas or in any of the expanding coastal suburbs, you might like to find a well positioned one where you can best catch the cooling sea breeze during summer.
Real Estate Perth: How Winter Can Be A Great Time To Buy
Seasonal weather patterns do influence the real estate market. Real estate in Perth is no exception. February to April and then again from October to November are the peak selling periods for real estate in Perth. During these periods the number of homes sold can be up to 20 per cent greater than other months. Home sales are historically at their lowest levels during the mid winter period of July and August and the holiday months of December and January.
At the end of March this year the number of homes on the market was around 13,000, but this has jumped to more than 14,000 in more recent months. Overall real estate listings in Perth have grown by more than 30 per cent since January.
Home opens are a good indicator of market activity. In warmer months people are more likely to do inspections, while in winter the cooler conditions, shorter days and footy matches on the TV keep most people inside.
Despite fewer sales occurring in winter the average time taken to sell properties does not vary a great deal throughout the year. Fewer sales in winter is usually a result of fewer properties for sale.
Serious home buyers aren’t too concerned about the weather, but interestingly it seems that those who make a decision about buying in winter do so after visiting fewer homes.
Remember to adapt selling strategies during the winter months. Advertising can be more important in winter to attract the more serious home buyers. And if it is cold and wet on the day of a home open, it pays to take some sensible steps to keep the place warm, dry, well lit and welcoming. If necessary, have a stand for umbrellas by the front door and a decent mat to keep the floors tidy.
From a buyer’s perspective, a wet and windy day is an opportunity to see how the home holds up, potentially exposing faults such as leaky roofs or inadequate storm water drainage. Such a day will help a prospective buyer understand the heating needs of the home.
Homebuyers can also find the winter months more beneficial when negotiating on the terms and conditions for a property sale, because the market is slower.
The current Perth real estate market indicates that some asking prices are coming down a little. With many owners still keen to sell, winter could prove an ideal opportunity for first home buyers. So, if you’re in the Perth real estate market for a first home now’s a great time to find a more affordable home and negotiate a good deal on the sale price.
HIgh Vacancy Rates In Perth Rental Market
New data on Perth Real Estate Rentals from the Real Estate Institute of Western Australia show that while the vacancy rate in Perth dropped slightly from 4.7 per cent in the December quarter to 4.1 per cent in March, the overall rental median is static at $370 per week.
REIWA President Alan Bourke said the slightly lower Perth Rental Real Estate vacancy rate was due to diminished stock and not to increased demand by tenants.
“What we are witnessing is that many investors who found it hard to sell in the last couple of years put their properties into the rental system to ride out the downturn.
“Now that things have improved, some owners are listing these dwellings for sale which accounts for the increased stock for sale and the lower vacancy rate,” Mr Bourke said.
Mr Bourke said this dynamic also helped to explain why rents were stable.
“Currently, there are no pressures that will increase demand and so cause Perth Real Estate rentals to increase dramatically, and typical rents in Perth have only increased by around $10 per week since the December quarter of 2008,” Mr Bourke said.
REIWA data show that the median rent for a house in Perth is $380 per week, up by a modest $5 on the December quarter, while the median rent for units, apartments, villas and townhouses was steady at $350 per week.
Despite no movement in Perth’s overall median rent, some sub-regions did experience rises and falls.
REIWA rental property data indicates rents grew by 6 per cent in the Bayswater-Bassendean region, to $350 per week, and also grew by 5.7 per cent in the north west region of Wanneroo ($370).
Conversely, rents fell by around 3 per cent in Gosnells ($330), and the Western Suburbs ($440).
Mr Bourke suggested a vacancy rate of 3 per cent for Perth Real Estate and would provide the ideal equilibrium between supply and demand.
“The current vacancy rate is therefore about 36 per cent higher than Perth’s long term average, but this can change quickly if jobs pick up strongly on the back of a resurgent resources sector,” Mr Bourke said.
In March 2007 the Perth vacancy rate plunged to just 0.8 per cent.
For more information on Perth Real Estate please visit http://www.reiwa.com.au - The Real Estate Instutitue of Western Australia.
