Unlike other cities around Australia, particularly those on the east coast, Perth remains an affordable option for first home buyers looking to take the leap into property ownership.
Western Australia has always had a high level of first home buyer activity, but since the down-turn of the mining industry, subsequent moderation of the real estate market and the record low interest rates, buying your first home in WA is the most
achievable it’s been for some time.
Higher than average listing stock offers more choice
There is also plenty of choice at the moment. Housing stock levels in WA remain above the long term average, which means you have more options to choose from. This, combined with less buyer competition in the market, means the odds are in your favour
to secure a home that meets all your needs at a competitive price.
Improved affordability in the market
The Housing Affordability Report released late last year by the Real Estate Institute of Australia and Adelaide Bank, showed that affordability in WA improved over the year despite declining slightly in the September quarter. This is very good news
for home buyers, and I would advise anyone who is thinking of entering the WA property market to take advantage of this improved affordability before the market lifts again.
WA first home owner grants and exemptions
Another incentive for first home buyers is the State Government’s recent decision to increase the First Home Owner Grant for newly built homes from $10,000 to $15,000.
For those home buyers who want to build, this is a great financial incentive to take that first step. $15,000 is a significant amount of money and will be a big help if you’re wanting to build a property from scratch.
However, for many people, the thought of building is not as appealing as purchasing an established home you can move into right away. As an Institute, we are concerned that this increase to the Grant will further widen the gap between new-build homes
and established properties, and recognise that it puts first time buyers of established homes at a disadvantage.
It’s disappointing that the First Home Owners Grant is no longer available to all first home buyers, however there are still other incentives available that make entering the market easier, such as the first home buyer transfer duty (formerly
stamp duty) exemption. Transfer duty is a significant cost to home buyers, so this exemption helps lessen that burden considerably.
First home buyers are in a strong position in Western Australia. If you’re thinking of buying your first home, speak with a local real estate agent to discuss the options available to you. Also, make sure to check out our WA first home buyers
guide.
Find your first property in Perth, WA.
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