Author name: angela

Moving from renting to home ownership is a dream many Perth renters hold close. With rising property prices and an increasingly competitive market, it can feel like a daunting leap. But with strategic planning and practical advice, the journey becomes much more manageable. Here are five expert tips to guide you from being a renter to a homeowner in Perth. 1. Assess Your Financial HealthThe first step toward homeownership is understanding your financial position. Savings and Debts: Ensure you have enough savings to cover a deposit and additional costs such as stamp duty, legal fees, and moving expenses. Also, try to reduce or eliminate existing debts. Rental Spend:  From your current rental spend you can calculate how much of a mortgage that will cover. E.g. $26000 a year in rent covers a $430,000 mortgage on an interest-only basis of 6%. Credit Score: A higher credit score can help you secure better mortgage rates. Check your credit report and address any issues. Income Stability: Lenders prefer borrowers with a steady income. If you’re considering changing jobs, it may be worth waiting until after securing your loan. 2. Set a Realistic Budget and Savings Goal A clear understanding of your budget is crucial. Estimate Costs: Calculate how much you can afford to borrow based on your current income and expenses. Don’t forget to factor in ongoing costs like insurance and maintenance. Deposit Size: Aim to save at least 20% of the property’s value to avoid Lenders Mortgage Insurance (LMI). Saving Strategies: Automate your savings, reduce discretionary spending, and consider extra work or a side hustle to boost your deposit. 3. Research the Perth Property Market     Knowledge is power when it comes to property hunting. Location Matters: Identify suburbs that align with your lifestyle, work, and family needs. Look for growth potential and amenities. Market Trends: Stay up-to-date with market trends and property values in your target areas. Understanding market conditions can help with negotiating a better deal. Attend Inspections: Explore different types of properties by attending inspections and auctions. This will help you refine your preferences. 4. Secure Pre-Approval and Seek Expert Advice Pre-approval gives you a clear indication of your borrowing capacity. Mortgage Pre-Approval: Apply for pre-approval from a lender to understand your borrowing limit and expedite the buying process. Financial Advisors and Brokers: Seek advice from financial advisors or mortgage brokers who understand the Perth market and can help tailor a plan to your needs. Legal Advice: A solicitor or conveyancer can ensure your contracts are in order and help you navigate the legalities. 5. Start the House-Hunting Journey Once your finances are in order, it’s time to begin the hunt. Property Search Platforms: Use platforms like realestate.com.au to find properties that meet your criteria. Inspections and Offers: Shortlist potential properties and attend inspections. Make offers that reflect your budget and the market value. Building and Pest Inspections: Before finalising the deal, arrange for building and pest inspections to avoid costly surprises down the track. 6. Putting in an offer (Talk to us first though) This is the scary part and having done your research will make you much more confident in your approach and your offers.  You can get sales data of properties around your area from the Valuer Generals Office so you know exactly what people have recently paid for similar properties.  This is better thane hearsay information. Getting assistance from an experienced family member or third party professional can help mitigate the sales prowess of a real estate agent good at talking up the price and the fact that everyone wants to buy this property. Finding out about the seller’s motivations can give you an idea of urgency as well and improve your bargaining position.  The real estate agent won’t give you this information too easily.   Divorce, death, distress, debt, health problems and other factors can mean settling at a lower offer is more convenient to the seller.  Talking to the neighbours is a good start. Knock on their door and say, we are thinking about buying next door.   You can find out if you will like your neighbours too and that’s important. It’s a great idea to get plenty of advice or get some help here if it’s your first time putting in an offer.     7. Choose Cockburn Conveyancing as Your Settlement Agent You’ll want a great settlement agent on your side to explain all steps of the process and what to include in the offer contract BEFORE you put in your offer.  The wording of conditions is important and we can give you exact wordings which will help protect your interests more than the sellers.  From Pest inspections, building inspections, electrical and plumbing. We handle all your ID checks and paperwork and keep you informed along the way Getting a quote from out team ahead of the offer process can give you more confidence as to what to expect. Get into your own home today Transitioning from renting to homeownership in Perth may be challenging, but with the right strategy, you can achieve your dream. Start by assessing your finances, setting a realistic budget, and understanding the local market. With expert advice and perseverance, you’ll be well on your way to finding a place to call your own. Reach out to our team for information about what’s involved in property purchasing and advice to understand property transfer costs.  If you are going to be subject to foreign ownership clauses because you or your spouse is from overseas and has not passed all the Australian criteria.  We can help inform you of what your status is here.  Its a quick phone call or email and you will be well informed by our expert term of Perth conveyancers and settlement agents. 

Navigating the property market in Western Australia can be challenging, particularly when dealing with strata-titled properties. From understanding levies to grasping by-laws and sinking funds, it’s crucial to have a thorough understanding before submitting an offer. Here’s everything you need to know. What is a Strata Title Property? A strata title is a type of property ownership where you own an individual unit or apartment within a complex and share common areas like gardens, pools, and driveways with other residents. A strata company is responsible for the management of common areas, enforcing by-laws, and overseeing financials and ensuring insurance coverage is appropriate. Key Considerations Before Buying Understanding Levies and Fees Strata Levies: Regular fees that cover maintenance of common areas, insurance, and administration costs. Special Levies: Extra charges imposed to cover unexpected expenses like major repairs. Sinking Fund: A reserve of money set aside for future capital works or unexpected expenses. By-Laws and Restrictions By-Laws: Rules governing the behaviour of residents and the use of common areas. Common By-Laws: Noise: Restrictions on noise levels at certain times. Pets: Regulations on pet ownership. Alterations: Approval process for renovations or modifications to your unit. Financial Health of the Strata Company Strata Financials: Review recent financial statements to assess the strata company’s financial health. Reserve Fund Plan: Check for a well-structured reserve fund plan, indicating future capital works. Maintenance and Upkeep Maintenance Schedule: Determine the frequency and quality of maintenance for common areas. Repair History: Review past repairs or refurbishments to identify potential future issues. Strata Insurance Building Insurance: Ensures coverage for the building structure and common property. Contents Insurance: Consider separate insurance for your personal belongings. Meeting Minutes and Strata Documents Strata Meetings: Review minutes from previous meetings to understand current issues and future plans. Strata Plan: A document outlining the layout and boundaries of the property. Management Statement: Describes the strata company’s management rules and obligations. Disputes and Litigation Dispute History: Look for a history of disputes among owners or between the strata company and contractors. Litigation: Ongoing legal battles can drain resources and escalate levies. Putting in an Offer Obtain the strata disclosure statement from the seller to understand the levies, by-laws, and upcoming expenses. Conduct thorough due diligence by seeking legal advice and obtaining a building inspection. Use findings from your due diligence to negotiate favourable terms, such as requesting the seller to cover special levies or repairs. Everything you need to know about how to buy a strata property Buying a strata title property in Western Australia can be a fantastic investment or a home for life, but only if you are well-informed. Take the time to understand levies, by-laws, and financials, and ensure that your offer reflects the property’s true value. Doing so will give you confidence and peace of mind in your new home. For more detailed advice on buying or selling a strata title property in Western Australia, visit Rezzi. Contact our perth conveyancers if you are wanting to know what to consider when putting in an offer to buy a strata unit, especially if you are only recently in Australia as other costs may be incurred that you need to know about.  We can explain what to expect for property transfer fees as we help buyers and sellers transfer their properties smoothly.   

In current property market, many Australians are questioning whether to buy or rent. While renting may seem more affordable in some areas, data suggests that in certain suburbs, buying could actually be the cheaper option. This is particularly true in several suburbs across Perth, Western Australia. Here’s a closer look at where it could be cheaper to buy than rent: Key Insights Suburbs Leading the Pack Baldivis Median rent: $400 per week Estimated mortgage repayments: $386 per week Armadale Median rent: $320 per week Estimated mortgage repayments: $283 per week Medina Median rent: $340 per week Estimated mortgage repayments: $289 per week Kelmscott Median rent: $380 per week Estimated mortgage repayments: $369 per week Brookdale Median rent: $350 per week Estimated mortgage repayments: $299 per week Factors Contributing to the Shift Low-Interest Rates: Record-low interest rates have made mortgage repayments more manageable for many. Government Incentives: Initiatives such as the First Home Owner Grant and the HomeBuilder scheme have made purchasing property more appealing. Rental Market Tightening: Increased demand and reduced supply have driven up rental prices in many suburbs. Advantages of Buying Over Renting Several factors contribute to the affordability of buying over renting in these suburbs. Record low-interest rates have reduced the cost of borrowing, making mortgages more accessible. Government incentives like the First Home Owner Grant and the HomeBuilder program have further encouraged first-time buyers to step into the property market. Additionally, increased demand and a tightening rental market have driven up rental prices, making renting comparatively expensive. Doing the Sums You should work out what you can borrow and spend on a new place.For example, If you spend $500 per week on rent you would multiply this by 52 weeks in a year to get $26000 a year in rent. You need to consider that when you rent you don’t pay council rates of about $2000 on average per year and water rates of around $1200 per year. As a renter you do pay the excess water rates.  If you rent a unit you also don’t pay strata fees which are often $500 – $800 per quarter or another $3000 per year as the owner pays this for maintenance and insurance.  These are some things to consider before buying.  But buying almost always will move you over time to a better position financially in our opinion. In order to work out what you could afford you simply divide annual rent – here $26000 by the interest rate you can get a loan at.   For example, if your interest rate is 6% then the divide $26000 / .06 to get an amount of $433,333.   This is the loan you can currently afford based on your rental expense.  Now you may also be saving more than that or have a deposit saved.  So if you have a deposit of $60,000 you could potentially buy a place comfortably for $493000 and be spending a similar amount on your own property.  In general the first couple of years you will probably be behind because of some of the extra costs a home owner pays as mentioned above.  But consider that your rent usually goes up each year plus  the amount you owe on your mortgage goes down each year meaning the pay back the loan faster and faster. This means your effective rent is actually now reducing every year (As long as interest rates don’t go up too much) AND property prices will tend to keep moving up with population growth which is a win for you.  SO you will start moving ahead and building equity and wealth and be better off in the medium and long term.  The longer one waits, can potentially leave them struggling to catch up.  But property moves in cycles so timing can be important. So by working out what you could afford and then finding an area that you can afford to move to you will be able to get into the property market and build equity which will give you financial security and choices into the future. You can use your first property as leverage to move up into a more preferred area once you have some equity in place. Considerations Before Buying Upfront Costs: Consider the deposit, stamp duty, and other associated fees. Market Trends: Stay informed about market trends and suburb growth forecasts. Personal Circumstances: Evaluate your financial stability and long-term goals before making a decision. When to buy over renting? In suburbs like Baldivis, Armadale, Medina, Kelmscott, and Brookdale, the data suggests that buying could be a smarter financial move than renting. However, every buyer’s situation is unique, and it’s crucial to weigh the pros and cons before making such a significant commitment. Whether you choose to rent or buy, the Perth property market offers various opportunities to find a place to call home. When you do buy, we can help do a smooth transfer of the property into your name.  Call us as your local Perth Settlement Agents and Conveyancers.  Want to learn more about the Perth property market? Read this article about Perth Property insights. Source: https://7news.com.au/business/property/revealed-the-suburbs-where-its-cheaper-to-buy-than-rent-in-your-state-c-3717456

Are you thinking about buying a unit in Perth? Perth’s property market is heating up, especially in the unit sector, driven by the tight rental market. According to recent data from the Real Estate Institute of Western Australia (REIWA), demand for units is soaring. Here’s what you need to know before diving into this hot market. The Current Market Climate The demand for units has surged due to affordability, lifestyle preferences, and tighter lending standards. This is not surprising given Perth’s median house prices are steadily climbing, prompting many to consider units as an attractive alternative. Perth’s rental market is also under intense pressure, with vacancy rates remaining stubbornly low. As a result, many renters are looking to buy units to escape the stress of finding rental accommodation.   Key Benefits of Investing in Units Affordability: Units are generally more affordable than houses, providing an entry point for first-time buyers and investors alike. Lifestyle Appeal: Units offer low-maintenance living, often with amenities like gyms, pools, and communal gardens. Prime Locations: Many units are situated close to amenities, transport links, and entertainment hubs, making them highly desirable for professionals and students. Rental Yield: High rental demand means solid rental yields, particularly in popular areas like the CBD, East Perth, and Subiaco. Tips for Potential Buyers Research suburbs carefully. Suburbs like Fremantle, Scarborough, and Mount Lawley are known for their vibrant communities and unit developments. Consider what features or facilities are essential for your lifestyle, like parking, storage, or communal spaces. Inspect units thoroughly and pay attention to the condition of common areas. It’s also helpful to speak to other residents if possible. Navigating the Buying Process Pre-Approval: Secure loan pre-approval to give yourself an edge when negotiating. Choose Wisely: Work with a local real estate agent who knows the Perth unit market well. Review Strata Fees: Understand the strata fees and any potential special levies that may impact your finances. Legal Due Diligence: Engage a solicitor or settlement agent to review the contract and strata records. Final Thoughts The current market conditions make buying a unit in Perth an attractive proposition, particularly if you’re seeking affordability, convenience, and solid returns. However, it’s crucial to do thorough research and get professional advice to ensure a smooth buying process.