West Australia’s First Time buyers should be getting a better deal
In a number of states across the country including Western Australia, First Time Buyers are being encouraged to build or buy new. A question arises, is that really the right move for them to make?
The First Home Buyers Grant, only available if First Home Buyers build or buy new is obviously skewed towards helping the home building industry – but is it in their interests?
I don’t think so!
As a professional in the real estate industry for over four decades, I strongly agree with Damian Collins, President of the WA Real Estate Institute.
He recently made the point that, “The first home people buy is the most important.”
This is because it is capital growth from their first home that will enable them to afford the trade up to their next home.
The reality is that better capital growth generally occurs in established suburbs rather than outer suburb localities where new housing and subdivisions are being established.
So to this degree the First Home Buyers Grant is pitched, and it is not doing First Home Buyers many favours at all.
As a Buyers’ Agent I strongly advise First Home Buyers purchase their property extremely selectively.
If they wish to build new, I go out of my way to find a block in a locality that has potential for capital growth.
Unfortunately First Home Buyers are not being given the guidance they should.
If a First Home Buyer is able to purchase without recourse to the First Home Buyers Grant they’re best advised to buy an established property.
The reason for this, particularly when using a Buying Agent is that prices on established homes are almost always negotiable.
People selling an established home are often motivated to sell and will consider offers if the offer is presented professionally.
The seller could be keen to upgrade, move to another location or be forced to sell because of circumstances; this means the price could be negotiable.
Whereas unless builders and developers are desperate to sell in abnormal market conditions, it makes it unlikely to be able to negotiate on a new build.
In saying that, the discount obtained through a professionally negotiated offer could well be equal to or more than the First Home Buyers’ Grant.
A perfect reason to use the services of a Professional Buyers Agent.
As a person who has been in the real estate industry for a considerable number of years. It surprises me that more of Western Australia’s First Home Buyers aren’t using the services of a Buyer’s Agent.
It takes years of experience in the real estate industry to know what the right price of a property is, within a particular market.
It is not necessarily the asking price or what the selling agent is asking for it.
Buying Perth Real Estate is a buyer’s agency dedicated to finding the right property for its clients and to save them money by negotiating the best deal possible on their property of choice.
Let us Help you, click here or give us a phone call: 0412 926 190 – you’ll be pleased for having made the call.
~ Clive Elliott, CEO at Buying Perth Real Estate