Buying a house in Perth is exciting and would probably be among your biggest purchases. But for first-time home buyers in particular, it can be a challenging and stressful process.

How Do I Purchase a Property in Perth?

Here’s how to buy a house or property in Perth:

• Step 1: Determine What You Can Afford
• Step 2: Submit an Offer
• Step 3: Know Your Fees
• Step 4: Pay for the  Property
• Step 5: Prepare for the Property Settlement
• Step 6: Accomplish the Property Settlement
• Step 7: Make Final Arrangement

To get started with your property goals, check out these steps in detail below as a comprehensive guide.

How Much Money Do You Need to Buy a House in Perth?

The range of median home prices from December 2021 to November 2022 was $877,500 for single-family homes to $430,000 for condos. 

Of course, you must first determine how much you can afford before looking for a home. Just like hopping from one bar to another, you’ll find the most suitable one through research, word of mouth, or personally visiting them.

This will vary from lender to lender and be influenced by your unique circumstances, such as your income and the amount of a deposit you’re able to put down.

You’ll typically need between 10 and 20 percent of your property’s value as a deposit. 

The First Home Owner Grant (FHOG), a programme sponsored by the Western Australian government, is something you should be aware of if you’re purchasing a home for the first time.

This grant, however, is only applicable to newly constructed residential homes. It’s not currently available for existing homes. 

You can apply for the $10,000 grant for a newly built home in Perth or other parts of Western Australia if you want to buy a home and are eligible for the FHOG.

Here are the main requirements for eligibility: 

What Are the Fees for Buying a House in Perth?

For the property purchase fees, you’ll be liable for disbursements and government fees. This is on top of your conveyancer’s fee and things like stamp duty, transfer registration fees, local government inquiries, and title searches. 

This could be a lot to learn in one sitting, so we advise you to get comfortable. You may talk about this with your seller or  real estate agent over coffee and take notes.

Also, your conveyancer will give you a pretty accurate estimate of the fees and costs you can expect. So, keep your communication lines open.

Is Buying Property in Perth a Good Investment?

Consider Perth if you want to buy a reasonably priced house. The real estate market in Perth has been stable, and sales have risen to their highest levels in the past 10 to 15 years.

And as the capital of the state, Perth is an engine that powers Western Australia’s economy. This creates many jobs and stimulates the state’s overall economic activity.

With the strong growth of Perth’s real estate market, the average rental yield is also going up. Due to its average property prices, Perth has some of the most affordable real estate markets in the world.

But before making any decisions, you should know what most renters and buyers are looking for. There are also other ways to decide whether buying a house is a smart investment. 

Consider these objective measures below that promote long-term property ownership.

Is It Better to Rent or Buy in Perth?

Due to historically low interest rates, some experts think it may be cheaper to buy a home in Perth than to rent.

On the other hand, home ownership isn’t the objective for all tenants. Some people may want to think about the area and rent where they can afford it.

Still, the best decision will depend on your goals, lifestyle, and financial situation, among other things. Taking into account your income, savings, and lifestyle, you must compare the advantages and disadvantages of each every time.

How Do I Buy a House in Perth with No Deposit?

Buying a house in Perth without a deposit is possible, though this isn’t without its challenges.

If you can meet certain requirements, such as having a guarantee on the loan, you might be able to get accepted for a loan from some lenders in Australia. 

This covers 100% of the purchase price of a home. But the lender will typically decide this on a case-by-case basis.

However, it’s relatively uncommon for lenders to provide house loans in which there is absolutely no requirement for a deposit from the borrower. 

Instead, if the borrower satisfies other requirements, such as having a good credit score, some may offer minimum deposit home loans with a loan-to-value ratio (LVR) of 95%. 

This means that the borrower still needs to come up with a 5% down payment and may need to get lender’s mortgage insurance (LMI).

Even if you aren’t required to put down a deposit for your house loan, there are usually other up-front expenses associated with purchasing a home that you’ll need to budget for. 

These expenses include stamp duty in some states and territories, legal fees, building and pest inspections, and so on.

How Can Foreigners Buy Property in Perth?

Foreigners with temporary visas, such as those with a spouse or 457 visa, are permitted to buy a single existing home or a brand-new home to live in while they are visiting Australia. 

Of course, they’ll have to fill out an application to get the Foreign Investment Review Board’s (FIRB) approval. For your information, the FIRB is responsible for evaluating foreigners who want to invest in or buy a home in Australia.

After a lot of work, time, and resources invested into purchasing your home in Perth, you’ll sure deserve to take some time off with a beer.

And there you go! We hope you find the direction you’re looking for to properly purchase a property or house in Perth.