In many states across the country including Western Australia, First Home Buyers are being encouraged to build or buy new. A question arises: is that the right move for them to make?
The First Home Buyers Grant, only available on the proviso that First Home Buyers build or buy new homes is skewed towards helping the home building industry. Is it in buyer’s interests, though?
I don’t think so!
I strongly agree with Damian Collins, President of the WA Real Estate Institute who recently said it is the first home people buy that is the most important.
It’s an accurate statement given that it is the capital growth from their first home that will enable them to be able to afford to 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 subdivisions have been developed.
In effect, the bias of the First Home Buyers Grant is not doing First Home Buyers many favours at all.
As a Buyers’ Agent, I strongly advise First Home Buyers to purchase land extremely selectively – if they wish to build a new home. I go out of my way to find a block in a locality that has the potential for capital growth.
Unfortunately, First Home Buyers are not given the guidance they should.
Some agents and property developers see them as a market to be secured rather than helped for the future.
They’re not giving them the right sort of advice.
If a First Home Buyer can purchase without losing the advantage of the First Home Buyers Grant, they’d be best advised to buy an established property.
The reason for this, particularly when using a Buying Agent, is the price of an established home is generally negotiable.
People selling an established home are often motivated to sell and will consider offers when professionally presented.
The seller could be keen to upgrade, move to another location, or be forced to sell because of circumstances. All of these open the door to negotiation.
Unless a builder/developer is desperate to sell in abnormal market conditions, there is unlikely to be any possibility of negotiation on a new build.
What’s more, the discount obtained through a professionally negotiated price can be equal or greater than the First Home Buyers’ Grant – an excellent reason to use the services of a Professional Buyers Agent.
As a person who has been in the real estate industry for many years, it surprises me that more of Western Australia’s First Home Buyers don’t use the services of a Buyer’s Agent.
Buying Perth Real Estate is a buyer’s agency dedicated to finding the right properties for its clients and to saving them money through negotiating the best deal possible.
It takes years of experience in the real estate industry to know the right price within a particular market – it is not necessarily the asking price nor the price the homeowner may dream of realising.
An advocate acting on your behalf can save you thousands or tens of thousands while also helping you navigate through unfamiliar contracts and conditions.
For more information, call Clive Elliott from Buying Perth Real Estate on 0412 926 190.
