Perth, WA - In a recent survey conducted by RP Data, 75% of Australians thought now is a good time to buy property in Perth. At the same time, moderate but steady growth was expected.
Survey director Timothy Lawless says, “Clearly Australians remain positive about the direction of dwelling values, however most respondents who think values will rise over the coming six and twelve months have fairly measured expectations of value growth.”
At the same time, 52% of homeowners believed that personal financial conditions should determine exactly when a property purchase is made, while only 19% believed potential for capital growth was a more important determining factor.
But how exactly can homeowners determine when their personal financial conditions are sufficient and what can they do to be in the best position to buy property now?
Determining the time to buy first involves making a budget. Homeowners can either look at land and property prices in the neighborhood they’d like to buy, or go from the other end and examine their financial situation and figure out which properties they can afford.
In either case, Aveling Homes advises most homebuyers to save at least 10% of the property value before buying. 20% is even better and will eliminate the need for Lenders Mortgage Insurance (LMI). The more money which is put down on deposit, the less is paid over the life of the loan and the lower monthly payments can be.
The savings over time from paying more up front can be quite significant.
While at least 10% savings is recommended for most situations, some home buyers who are unable to save at least 10% of their property may still be in a good position to buy if they qualify for government assistance.
Moderate income earners who have a steady job but are having trouble saving up enough for deposit may qualify for KeyStart Home Loans supported by the WA government. KeyStart Loans have a low deposit requirement, generally 2%, as well as a low variable rate over the loan term.
KeyStart loans do away with costly Lenders Mortgage Insurance, saving home owners a great deal up front.
Learn About Home Loans
Home loans are the biggest loan most Australians will ever take out. Every home buyer would do well to learn about the different types. Taking a few minutes to learn about variable and fixed rate loans, as well as features such as offset accounts and redraw facilities can be the difference between a homeowner who pays off his loan early or one who spends 30 years paying interest and still doesn’t own his home.
One specialty loan which can benefit many home buyers is the construction loan, which allows them to delay payment on the balance of the loan until completion of the property. Construction loans allow homebuyers to save money while their home is being built.
About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.
Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.
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