Deciding on a home in Perth is both exciting and complex, with so many suburbs and housing options to choose from. Do you want a house and backyard, a villa or high-rise apartment? Should you build or buy? There are plenty of options to consider, and the answers lie somewhere within your financial and lifestyle situation.
The Perth property market is starting to show signs of life after a period of downturn, so confidence in Perth real estate is starting to bounce back. What does this mean for homebuyers and investors? We look at some of the top questions to answer, to help with your decision making.
What is the Property Market Cycle?
The Property Market Cycle is literally this – a cycle. Prices rise, fall, stabilise and then rise again. The cycle is influenced by employment rates, population, the economy and many other factors that affect supply and demand for property in a given area, and therefore property prices.
Perth property cycles usually run between 7 to 10 years and go through four phases:
Value: when prices are flat, usually during periods of economic downturn. Good time to buy.
Growth: Confidence in the market grows, and property prices begin to rise.
Peak: Property prices are at their peak, good time to sell.
Correction: prices will flatten out and begin to stagnate, sometimes a crash will occur.
Market experts believe Perth is currently in the Value-Growth phase, so a good time to consider investing.
When is the Best Time to Buy?
Perth has gone through a decline in recent years, which means it’s a promising time for homebuyers and investors. Recent research suggests many property investors are looking to Perth over other Australian states, while Perth makes its recovery.
This means it may also be a good time to look at suburbs in typically higher priced locations, where you may not usually be able to afford, such as inner-city suburbs. If you can buy low in a good location now, it should lead to financial growth in the long term.
Should I Build or Buy?
The age-old questions, to build or buy? Perth is experiencing some real growth in new housing developments, and the allure of the house and land packages can be very inviting. But you also need to be patient, with building plans and approvals, plus the time it takes to build, delaying your move into a new home. Consider some of the pros and cons below, to help decide which is best for you.
Buying an established Home
|Potential to move in straight away||Will require maintenance|
|Know what your getting||No control over design|
|Usually in an established area, and most likely closer to the CBD||Time consuming inspections and negotiations|
|Larger land sizes||No warranties – any issues or defects are your responsibility once purchased|
Building a New Home
|Great concessions available on stamp duty & first home buyers grant||Slower process – account for planning and build time|
|Everything is brand new||Smaller land sizes|
|Better Passive design||No landscaping|
|Creative control of||No suburb data|
If you do decide to build, check our article on the top questions to ask your builder.
Should I Buy a House or Apartment?
Apartment living has risen in popularity in Perth and all across Australia, in the past decade. Gone are days of quarter acre blocks with huge backyards, many Australians are now opting for the low maintenance convenience of apartment living.
Deciding whether a house or apartment is right for you, really comes down to lifestyle and budget. If the inner city life is for you, than apartments are affordable ways to make that happen.
There are also some downsides to apartments, you need to live by the rules of the strata or apartment building, and there may be restrictions on renovations or pets. You are also in close proximity to your neighbours, which may come with its own set of issues.
When it comes to deciding on a house or apartments, look to the future – are you considering starting a family? Will you want a garden down the track? Where will you be working, do you need to be close to the CBD?
How Much Can I Borrow?
Before you commit to a purchase, make sure you have your finances in place first. A visit to a mortgage broker or bank will help you understand how much you can borrow and what sort of deposit you will need. Consider the following:
Home Deposit: it is recommended you have 20% of the property price as a deposit.
Other Fees: you will also need to pay for a building inspection, pest inspection, land/property survey, settlement agent, insurance and other bank fees and charges.
Grants & Concessions: check if there are any grants or concessions available (often new home build come with some concessions on stamp duty).
First Homebuyers Grant: if this is your first home, check to see what you are eligible under the first home buyers grant.
How Can I Add Value?
To make your way up the property ladder to your dream home, you to need to find the best ways to maximise the value of your first purchase. When looking at properties, you want to keep a look out for the best value adds you can make to the home, after you purchase it.
A good rule of thumb, is to spend under 2% of your home’s value on renovations, without over capitalising. Some tips from Perth property experts include:
Energy Efficient Window Film – boost the value of the property with energy efficient window film. Perth property owners are looking for ways to reduce energy bills, and be kinder to the environment, and solar window film is a great way to achieve both.
Curb Appeal – the exterior of the home is a major selling point, so check if there are some quick wins to boost the curb appeal, be it with landscaping or a paint job on the exterior of the home.
Functional Outdoor Spaces – Perth residents are big on the outdoor lifestyle, so look for simple ways you may be able to improve the outdoor space, be it with a new patio or updates to the garden.
Security & Privacy – check if there is adequate security doors and security window film, to protect the home. Its also worth looking for any privacy issues, which you fix with smart landscaping or frosted window film.
Where are the best suburbs?
The cheapest property is not always the best. The location of the property plays a big part in the overall value. Suburbs with good public transport infrastructure, schools and other amenities are more sought after, than a cheap property in a remote location.
In Perth, some lifestyle considerations include proximity to the CBD, beaches and rivers, good schools and train stations are highly sought after. While there may be cheaper properties on the market, look at the overall value and higher rates of capital growth. Do your research with REIWA and other real estate tools, to get a good understanding of the best growth suburbs.
What have other properties in the area sold for?
Don’t look at the asking price, to determine the value of the property. Check what other similar houses have sold for in the same area. Also, speak to as many property experts as you can, so you have a good understanding of the property’s potential.
Contact Complete Film Solutions
Complete Film Solutions have been helping Perth home owners add value to their homes for the past 14 years. Speak to one of our friendly team today, about how our quality window film can save money and add value to your home.