Potential first-time home buyer in Perth

Discussion in 'What to buy' started by bryceh, 19th Jan, 2022.

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  1. bryceh

    bryceh New Member

    Joined:
    19th Jan, 2022
    Posts:
    1
    Location:
    Perth
    Hello everyone,

    I'm a potential first time home-buyer looking to buy a house in Perth. I have been doing some research, and would just like some opinions on what you would think my best plan of action would be.

    I am thinking that all things considered, my budget would be around $350k when I really start to put things in motion.

    I'm in my mid 20s and don't really have too much in the way of a house deposit saved at the moment with around $13k currently - but looking to increase my savings, and I am planning on leaving my CBD apartment that I am renting in the middle of the year in favour of something cheaper to allow for more saving. I am studying to become a Chartered Accountant which means that in under two years I will be exempt from paying LMI (from my understanding) and was tossing up whether it would be better for me to save what I can and then look into copping the LMI for the time being before becoming a CA with a deposit under 20%, or waiting until I become a CA or, managing to get to 20%. I'm not sure if me looking to cop the LMI in favour of purchasing a home sooner is just me being naive, or could be considered if it means getting in earlier.

    I intend on living in the house for a period of time, but I intend on moving and working overseas for a few years or so (no-concrete plans yet), so ideally I would like to purchase a house that would be easy to rent out when I'm out of the country. Would there be any good areas to do so? I grew up in Cannington and despite the rough areas, it's proximity to town, Carousel, and I believe they're doing up the area around Carousel too means that from my uneducated standpoint seems like a potential option?

    Thank you for any help at all as I am very new to this kind of thing and looking forward to learning more! :)
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Do you know how much the lmi would be? Your lvr is 95+. Above 90% lvr lmi gets expensive.

    Suggestion is to save hard now on your current pay, then keep the same spending when you pay goes up after qualification. Then your savings will really go up.

    Since yields for perth are pretty decent, do you really want to live in the house yourself? Or rent somewhere closer or share?
     
  3. Citycat88

    Citycat88 Well-Known Member

    Joined:
    18th Jun, 2016
    Posts:
    128
    Location:
    Perth
    What type of property are you looking for? Do you know how much you can borrow?

    A quick internet search reveals plenty of 3 bedroom villas in Cannington under $400k, although most look old and need some work.

    https://www.realestate.com.au/buy/with-3-bedrooms-in-cannington,+wa+6107;/list-1?activeSort=price-asc

    It also shows how much Perth metro has come since the beginning of 2021. Eighteen months ago you could get newish similar properties in Queens Park and better neighbouring suburbs in this price point.