Cheaper upfront costs give WA buyers an advantage
Announcement posted by Smartline 24 Jul 2017
Upfront costs are the big ticket fees and charges like Stamp Duty and government charges that can quickly eat away at your savings.
In Perth, a 5% deposit and purchasing a property at the cheaper end (25th percentile) of the market will on average set you back $33,122 for a unit and $40,722 for a house.
Costs for 5% deposit and stamp duty on
25th percentile property
Source: Core Logic, Wondering How Much You May Need To Enter the Housing Market?, 29 May 2017
Buying in Perth appears to be a good option when you look at other major capital cities around the country. A home buyer can expect to save over $20,000 by choosing to buy a house in Perth instead of Canberra and up to $35,000 by buying a unit in Perth over one in Sydney.
Principle of Smartline Rockingham Mortgage Advisors, Justin Smith, said that while most of the cost savings can be put down to differences in house prices, there are advantages to comparing government costs across the states.
“For savvy investors, it pays off massively to do thorough research into what buying a property will cost you in Western Australia compared to somewhere like Victoria or NSW,” Smith said.
“The national market has seen strong investment demand in Brisbane and Perth over the last 12 months and part of this is that cheaper upfront costs mean investors can maximise capital growth. It’s important to remember that any money you avoid having to spend to purchase a property translates to extra profit,” he said.
To make sure you are minimising your upfront costs Smith recommends talking to a mortgage broker.
“Our brokers understand what the upfront costs are in each state and what you need to do to qualify for concessions and grants.”