5 things for first home buyers to consider
To Build Or Not To Build.
As independent building consultants (New Home Building Brokers) we come across many
first home buyers asking when is a good time to build, should they build due to the current
First Home owner Grant & stamp duty exemptions & where is a good location for growth.
However in the current market & political scene (state & federal) there are a number of key
points to consider
1. First home buyers are increasing being pushed to the extremes of Perth in the name
of housing affordability – If you haven’t driven to Yanchep, Alkimos or Byford
recently, you should be prepared for a shock along with a significant commute to
work & a lack of infrastructure.
2. Finance – obtaining a finance pre approval from a lender or broker presents as
relatively easy, however obtaining a formal finance approval is presenting as an issue
in the building industry due to low valuations & increased regulatory requirements
from lenders. The current over supply of established stock in Perth also plays a role.
These issues are only going to be compounded by the current Royal Commission
which is scheduled to run through to at least the end of this year.
3. WA State Budget – There is good awareness that the residential construction
industry is a large multiplier for the economy in comparison to the purchase of an
established home. Successive state governments have trimmed the stimulus
available for first home buyers & this direction is unlikely to be changed soon based
off forecasts for the upcoming WA state budget (We won’t even talk about GST for
4. A key driver for housing price growth is access to services & infrastructure, whilst
developers & sales consultants in display villages are keen to talk up future plans for
land estates at the extremes, first home buyers need to consider their requirements
& the potential for limited growth.
5. The WA State government is pushing local governments with regards to town
planning schemes advocating for the increase in dwelling density in proximity to
existing infrastructure eg rail & road networks – City of Nedlands & Subiaco are just
2 examples of councils having proposed significant changes with regards to urban
infill & the growth of apartment living in Perth
NHBB encourage first homebuyers to do their research and to debate the pro’s v con’s of
buying land and building at the extremes of the Perth metro area. Whilst the first
homeowners grant & stamp duty exemption may sound appealing it may take several years
before any capital growth is actually achieved.