Buying an affordable, existing home can often be a better option and 70 percent of first time buyers choose that. Either way, it’s important that people seek professional financial advice before committing to home ownership.
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Perth, WA (PRWEB) June 05, 2014
Looking at its regional centre profiles, Western Australia has a noticeably strong housing culture, with most residents opting for a green title lot with stand-alone homes. In Perth, houses account for about 80 percent of all new dwellings, in contrast to Sydney where apartments, villas, units and townhomes account for half of all new dwellings.
But apart from analysing Perth suburbs price data, prospective homeowners need to account for other important factors. Real Estate Institute of Western Australia (REIWA), in a feature article posted on its website entitled "To buy existing or build new?", details the merits of buying an existing property and having a new house built.
In the article, the property portal notes that many homeowners opt to purchase built properties due to the lower acquisition cost and convenience. REIWA, however, notes that buyers of existing properties, especially older ones, should factor in renovation costs.
On the other end of the spectrum are those who prefer having a home tailored and built for their particular needs and desires. Although cost and effort are associated with having a home built from scratch, there are several factors that would be in the favour of prospective property owners inclined toward this route.
For one, first home buyers are eligible for a $10,000 grant. Many are enticed to have a home built because of the idea of being able to take advantage of the latest home features which offer environmental benefits. REIWA also notes that the availability of land in older parts of the metropolitan area, through the urban infill policy, has encouraged people in their 40s and 50s to pursue their dream of having a home built for them. The latest real estate information from REIWA states that there are about 1,340 blocks of land for sale in and around Perth and nearby locations.
Another notable factor that has motivated prospective owners to have a home built for them is the slowdown in the mining industry. This has resulted in the high availability of skilled workers ready to undertake land development and home building at a relatively lower cost, which counterbalances the upward trend of the overall costs of building a property.
REIWA also reported that developers are countering these trends that lean toward the building of homes from scratch by offering house and lot packages at affordable price points.
"Ultimately, it’s the cost comparison between building or buying that will usually decide which option people choose," a representative from the industry-based portal explained.
But whichever route a prospective owner chooses, REIWA cautioned that due diligence should be done to avoid over-extending themselves financially.
"Buying an affordable, existing home can often be a better option and 70 percent of first time buyers choose that. Either way, it’s important that people seek professional financial advice before committing to home ownership," he concluded.
To read the article in full and learn valuable industry data, including top residential sales persons in WA, visit REIWA's website today.