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Why now is the best time to take the leap into the property market

Shipwreck Cove at Golden Bay.
Camera IconShipwreck Cove at Golden Bay. Credit: Supplied.

Buying property can be overwhelming – there’s a lot to know, to prepare for and commit to.

Knowing how challenging this can be, Peet Managing Director and CEO Brendan Gore offered some helpful information to support buyers in making the right decision about when, where and how to build a house that is perfect for them.

In fact, if you are looking for reasons to buy now, here is a handful of very good ones.

Tight rental market

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Perth’s housing market is busy. According to CoreLogic’s Quarterly Rental Review, Perth was the fastest growing rental market in 2020, which has put an enormous strain on supply of rental properties. In turn, this has led to significant price increases, even before the McGowan Government’s moratorium on rental price increases ended on March 28.

“With rental prices increasing due to low supply and high demand, the opportunity for people to invest their rent money into property is compelling,” Mr Gore said. “First homebuyers are often surprised at the comparability of home loan repayments to rent – particularly in moments like these.

Bonuses and rebates

The support of Federal and State Government incentives has provided unprecedented opportunities for new homeowners. In fact, in the last month of 2020 alone, more than 15,000 first homebuyers took the plunge into securing a home loan.

“Within WA the First Home Owner Grant and Off-The-Plan duty rebate could save you up to $35,000,” Mr Gore said.

“For more information, be sure to chat to your mortgage broker or home loan specialist.”

Record low interest rates

“Record low interest rates are a major incentive to purchasing a home and locking in a rate that will see you pay off your mortgage faster, saving you thousands of dollars in interest,” Mr Gore said. “Securing a mortgage at a competitive variable rate can save you thousands over the life of your loan. Include bonuses and rebates like the $10,000 First Home Owner Grant, and there are even more opportunities to save.”

Stamp duty savings

There are also stamp duty savings – if you’re a first homebuilder, you’re exempt from paying stamp duty on land below $300,000 and receive concessional rates up to a $400,000 land price. Subsequent homebuilders are required to pay stamp duty on their land purchase only, but can rest easy knowing they’re only charged on the value of the land, versus on the full home cost when buying established.

“Alongside these savings, buying property has also never come with so much choice and amenity,” Mr Gore said.

More choice and new amenities

“Whether your new home is near a park or the beach or on a small or a large block, you can decide your location and choose from hundreds of home designs, inclusions and finishings,” Mr Gore said. “Here in WA, we are seeing significant investment in new infrastructure, including public transport, schools and childcare centres.

“In addition, one major change through 2020 has been the increased opportunity for many people to work from home, which means people can choose to buy for their lifestyle and not simply because it fits with work.”

Expert advice

Knowing your future is in safe hands is imperative when it comes to building or buying your home, particularly if it’s your first. Peet has developed a First Home Buyer Toolkit, available through its website, to guide people through the process and break down the key steps from finance tips through to contracts, settlement and moving in.

Lock in today’s prices

“With Peet, you can lock in your land price today, knowing that you don’t need to pay until construction of the lot is completed,” Mr Gore said. “From there, you can pay for the construction of your home in regular instalments and avoid the risk of increasing repayments on established homes due to a rising market.”

For further market insights, or if you want to make sure you’re making the right decisions to find your perfect home, check out the free Peet House and Land Guide, where you can also discover over 250 house and land packages for suburbs all around Perth, from Perth’s top builders.

From the tight rental market to record low interest rates, discover a few very good reasons why you should be purchasing your new home now. For more information, visit the website.

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