Buying a Home In Western Australia

It is important to remember that buying a home
in Perth is a different process to buying in the UK.

We suggest that when you arrive in Perth & are ready to purchase a home here you do research on the area you are thinking of moving to.  Here are some suggestions on how to do that

Check out the real estate pages in your local paper or on the internet for local “home opens” Most real estate agents will have these during the weekend – they simply open a home they have for sale & you can simply walk around the home without an appointment to get a feel for the place.  This would give you a good overview of the type of property available in the area & the difference in prices.  Often homes close to the beach or a river are much more expensive than something equally as good in terms of size/condition which may be a 5 minute drive from the beach.

Contact your local Bank or Mortgage Consultant to have an idea of what sort of money you may be able to borrow.  Lenders have different policies lending criteria can vary greatly both in terms of what you may be allowed to borrow & the waiting time to borrow (how long you have had employment in Perth). Mortgage Consultants/Brokers do not charge you for their services & they have access to a variety of lenders. Mortgage Brokers are regulated in Australia.

Once you have decided on area & know how much you have available then you can view properties with a real estate agent.  Unlike the UK most people find an agent they get along with & the agent will find the home for you regardless of if it is listed with their particular agency. Do not feel you need to use the first agent you speak to, if you find someone you like & get along with you will be able to express your needs better. I would suggest you make a wish list of things you require for your family you may not find the perfect home but it will give your agent an idea of what exactly you want to look at. Always remember that the agent is working for the seller as a buyer it is up to you to verify all information given to you. Real Estate Agents are regulated in Australia.

Purchasing your home in Perth

Once you decide to purchase a property you will be asked to sign an “offer to purchase” this is part of a legal contract here in Western Australia. When you make the offer you should ensure that you have stated all your conditions to purchase such as settlement date (this usually takes place 28 days after finance approval) this date can be altered to suit both parties.  If you require any works to be carried out or you wish the contract to be subject to inspections of the property they should be included in the contract as should any fixtures or fittings. You should also specify that plumbing & electrics should be in good working order as should the reticulation & bore (a bore is sunk in the garden to the water table & water is pumped & the gardens reticulated during the summer months) All contracts should state “subject to finance” unless you have cash funds available. You will also need to appoint a settlement agent to complete the purchase for you it is worth shopping around since you can often negotiate a better price for this service. It is important to remember that if the offer is accepted you are obliged to purchase. Costs associated with buying a home in Perth.


Loan fees

  • Establishment fee
  • Valuation fee
  • Stamp duty on mortgage
  • Registration fee
  • Preparation fee

Many lenders will negotiate on these fees it is worth shopping around some do “packages” if you have accounts, credit cards, mortgages & insurance with them

Settlement

A settlement agent is responsible for legally transferring the property from the owner to the purchaser.  It is important you have a good agent to ensure everything is done legally & smoothly.  The settlement agent will also deal with the Bank with regard to funds being available etc.  The Real Estate Agent will often recommend a Settlement Agency but it pays to shop around.

Settlement Agents Scale of Fees for a Buyer

Value of Property:

  • Less than - $25,000     $235.40
  • $25,001 - $150,000     $235.40 + 0.264% of amount in excess of     $25,000
  • 150,001 - $500,000     $572.00 + 0.22% of amount in excess of       $150,000
  • 500,001 - $1,000,000  $1357.40 + 0.165% of amount in excess of  $500,000
  • $1,000,001 - onwards  $2198.90 + 0.11% of amount in excess of    $1,000,000

Always ask if a discount is possible most agents will discount fees up to 25% in some cases.

At Settlement

  • Settlement Agent fees
  • Cost of searches etc
  • Shire & Water rates
  • Land Transfer –stamp duty
  • Registration transfer of land

Stamp duty is not payable up to $500,000 if you are buying your first home here on the house value. Stamp duty calculator

 

Insurance

Most banks offer insurance services & if you borrow money the Bank will need to either insure the property via their own insurers or you will be asked to provide a certificate of currency with another insurer. Again phoning around will save you money & research can be done via the internet for insurance companies.

Overseas Investor

Some visas issued to temporary residents require you to apply to the Foreign Investment Review Board if you wish to purchase property here.  It is important if you need to do this that it is clearly stated in the contract & time is allowed for this to be carried out.



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