Perth Property Scenario
Perth lies in western Australian region and it offers as many as 25 different sub suburban regions and all of which follow their unique lifestyle. It is due to high increase in the sub urban regions in Perth that real estate Perth market has grown by leaps and bounds. Whether it is Perth homes or Perth property in general you will get plenty of options to secure. Choosing the right Perth real estate property would require that you hire the services of reliable and experienced agent.
It is because only reliable and experienced Perth real estate agent would let you get through the most happening and affordable Perth property deals. Furthermore, if you are new to Perth, then hiring the services of experienced Perth real estate agent will let you provide with most happening real estate deals which will get you best property and that too at the best of the locations. Wit increasing demand for properties in Perth, new Perth real estate developers have come in line. However, it is very necessary that you check the authenticity of these new real estate developers for your own good. While buying Perth property it is also quite necessary that you check on the style and size of the property. It will again depend upon your desire and type of property which you would like to go ahead with. There are one, two and multi storey Perth property which is available for sale. Remember, the price of Perth homes and commercial property will also depend upon various factors of which the two most prominent ones include design and the location.
Therefore, it will be good idea to hire the services of professional Perth investment property agent right in the beginning. In this manner, you will get the reliable offers and furthermore there will be full peace of mind. Make sure that when you go for Perth real estate property deals, detailed comparative analysis. This detailed and comparative analysis will help you get best of Perth property deals which will be economical and solve your purpose. Do not display any kind of hurry when you are acquiring the Perth property as this may possibly turn out to be a huge disaster later. Verify with the genuine Perth real estate property web site and make the final selection. Of course, you just cannot take quality of Perth homes and commercial property in the back stage. Keep in your mind that you do not make any compromises on the finishing aspect.
How To Find The Best Home Loan For Your Property In Western Australia
Many home buyers don’t actually know how much they can afford to borrow until they actually apply for a loan. This situation is not ideal because an informed home buyer is always in a much better position to make an offer on a property.
Up until about ten years ago it was pretty much the case that the ‘rule of thumb’ for buying a home was that you could borrow about three times your gross household income. So, if a couple was making $110,000 between them each year, a bank might loan up to $330,000.
This rule of thumb doesn’t apply terribly well today with house prices having grown so much. In January this year, the median purchase price for first home buyer in Western Australia was $400,000.
Of course, the price will vary depending on the suburb you are interested in. For example, in 2010, the median purchase price in the popular suburb of Subiaco was $1.3 million while in Kardinya is was $600,000. You can research other Western Australian real estate prices at the REIWA web site.
One way to a smooth start with a home loan is to have a healthy deposit. If you don’t have a deposit, it’s a good idea to start a regular savings program in preparation. Lenders do require evidence of savings before approving a home loan.
A trap for many first time borrowers is to put all their savings into the purchase of a new home. It’s wise to have a cash reserve of at least two months mortgage repayments to cover unexpected costs.
Talk to your financial institution or mortgage broker about the deposit. Most prefer a deposit of around 10 per cent the purchase price, but this is becoming unrealistic. Deposits of 5 per cent are now common.
Ask your lender to outline, in detail, all the fees that apply to the loan. Remember to including mortgage costs, mortgage insurance, stamp duty or any other fees that may apply. These costs are added to your home loan. Rather than looking at how much the bank will allow you to borrow, it makes more sense to concentrate on how much you can comfortably afford.
For more information about home affordability and applying for a home loan, please visit www.reiwa.com.au
What You Need To Know About Selling Your Home In Perth
Perth real estate and homeowners who neglect their homes and then need to sell at short notice often encounter problems because the property simply isn’t ready for sale.
keep your home and garden in top condition. Keep up with regular maintenance on your property. Do annual inspections on the roof and gutters to ensure problems can be fixed in reasonable time. Especially now that it’s getting harder to find and schedule quality tradespeople in Western Australia’s tight labour market.
Inspect the hot water system and air-conditioners regularly. Attend to any faults or repairs quickly. Unresolved issues might be uncovered during an inspection. It’s much easier and cheaper to do regular maintenance on your property than last minute emergency work.
Don’t forget an annual termite inspection too. Many sales are interrupted by the discovery of white ants. This can delay a settlement and result in extra costs to the seller.
You should also be thinking about how you will sell your property? Use the services of a competent, licensed real estate agent with a good knowledge of your local area. Local agents know the Perth real estate market and meet with prospective homebuyers often. Speak to agents about the best strategy to sell your home and set a realistic timeframe for this.
It’s critical that you fix a realistic selling price. It’s important to listen to your agent about setting the right price, and also if he or she suggests you modify the price after a few weeks if potential buyers have shown little or no interest.
Historically, real estate in Perth has generally experienced a five-year property cycle. Like all real estate cycles this includes periods of low activity, recovery, booms and downturns. This cycle will influence the selling price and REIWA agents are well placed to explain where in the cycle your sale is likely to be, and how to best respond to that.
Take time early in the process to arrange or restructure your finance or home loan. Making an appointment with your mortgage broker or bank manager is vital. It might be the case that your existing home loan can be refinanced to include extra funds needed to buy your next home. Arranging your finance early will free up valuable time for when you do eventually sell. Doing this can save you stress, time and money.
Be prepared for a sale by ensuring the property is looking good, following the property market, talking to licensed agents, having the right selling price in mind and meeting with your bank or mortgage broker to plan your finances.
REIWA Dismisses Perth Property Growth Claims By BIS Shrapnel
The Real Estate Institute of Western Australia has dismissed claims by BIS Shrapnel, that house prices in Perth, WA would grow by around 7 per cent each year for the next three years.
REIWA President Alan Bourke said this prediction was not supported by current trends in real estate data.
“REIWA data is showing that the number of properties on the market in Perth has jumped by 32 per cent since January, with more than 14,000 listings currently up for sale in a sluggish market,” said Mr Bourke.
Mr Bourke said the rental market in Perth was also quite soft.He said rents have remained steady for more than a year and a half and that the vacancy rate of available properties is hovering around 4.
“The reality is that the uncertain economic conditions overseas, coupled with concern about the resources super tax and a lowering of the expected migration intake over the next year is making the local market very flat, with many buyers waiting until after winter and the looming Federal election to see how things pan out.
“I expect that the Perth property market will be very steady for at least the next year, then after that we may start to see some modest growth, but nothing like 22 per cent over three years, that just isn’t realistic under current conditions,” Mr Bourke said.
Mr Bourke said Perth was now a buyer’s market. Home opens seeing many people doing the rounds to make sure they saw everything in their price range to ensure the best deal.
“Sellers need to understand that the Perth market will be flat for at least a year, so it’s important to listen to your agent about setting the right price for a quick sale,” Mr Bourke said.
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.
Investing In Real Estate, Perth
If you want to buy an investment property in Perth before the end of this financial year, then you better get a move on as there are just two months to go.
Buying property should never be a rushed affair. All serious investors should be sorting out their finances as soon as pos sible and looking at suitable properties now, especially if you want to make an investment before 30 June 2010.. This is particularly the case for first time investors.
Some investors will choose to leave it to the last minute and hurray their purchase before 30 June, simply as a strategy to claim the allowable tax deductions associated with the investment during this tax period..
Most people however wouldn’t be inclined to do that, because it could mean that as a buyer they have not had adequate time to properly research the Perth real estate market in terms of price, rental returns, availability of stock and so on.
Experienced investors tend to always keep an eye on the local Perth Property market and allow themselves plenty of time to select the best possible property for their needs, expectations and budget.
If you are a first time investor, then now is the time to be talking to professional financial advisers about your aspirations and the amount of money you have available to invest. Consider the areas you are interested in and if possible plan to inspect properties that are suitable..
Account for the extra State Government stamp duty you will pay and don’t forget to factor this extra cost into your plan.. When you sell the property in the future this stamp duty along with some other costs, such as agent’s fees, are tax deductible. Try the Australian Tax Office (ATO) website for more details.
I am often asked by members of the public to give them a tip as to “the best place to invest.Unfortunately, there is no answer to this question.. Your budget and goals will dictate what kind of investment property is best for you.. Are rental returns, land prices, capital growth, development opportunities or tax deductions important to you?? How long will you keep this investment??
There is no such thing as “the best place to invest”, instead try thinking about “the best ways to invest”.. That means getting competent financial advice from professionals. Then talk to some real estate agents about good opportunities in the areas you like..
Consider working with a Buyer’s Agent if you are pressed for time and need to purchase before 30 June..
Real Estate: The Rental Market In Perth
Tenants in Perth continue to profit from stable rental prices. The vacancy rate for properties to let remains above average.
New data 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 median rent remains unchanged at $370 per week.
REIWA President Alan Bourke said the slightly lower vacancy rate in the Perth real estate market was due to diminished stock and not to increased demand by tenants.
“What we are seeing is that many investors who found it hard to sell in the last couple of years put their properties into the rental market in hopes 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.
“There is no great demand pressure to cause rent increases and it’s notable that typical rents in Perth have only grown by about $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.
Data from REIWA show that rents increased by 6 per cent in Bayswater-Bassendean (to $350 per week), and by 5.7 per cent in the north west section of Wanneroo ($370).
By contrast, rents fell by around 3 per cent in Gosnells ($330), and the Western Suburbs ($440).
Mr Bourke said that a vacancy rate of 3 per cent was ideal for Perth and provided the right 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.
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.