Tips for First-Time Homebuyers: Navigating Property Settlement in Perth

Buying and selling property in Perth can be difficult to get your head around, especially if you’re buying your first home.  That’s why it is vital that you get guidance and seek professional advice to help you achieve your long-term home ownership goals. Well, don’t worry! Perth’s top-rated property settlement agency is here to help you. KDD Conveyancing is a property settlement agency built on 27 years of conveyancing knowledge and experience. For those looking for their first home in Perth, we’ve put together this helpful guide to help you make all the right decisions.

1. Think About The Property Location First

This may sound like an obvious point but hear us out: there are a lot of factors that go into choosing where you want to live.

Here are some of the essential considerations when it comes to location:

• Understand the market: Research median house prices, WA market trends, and the growth potential of various suburbs. REIWA has suburb profiles on their site that can give you insight into this decision.
• Consider your needs and lifestyle: Consider your immediate and long-term needs. Are you thinking of starting or growing your family? If so, you’ll want to consider proximity to schools and recreational areas such as the beach or parks. Do you want or need a large garden? How many bedrooms will your property need? These are just some of the important questions you’ll need to have concrete answers for before you’re ready for the next step.
• Sign up for alerts: When you’ve narrowed down your search, it’s worth signing up for alerts with REIWA so you can get notified when properties meeting your needs come up in suburbs you’re actively interested in. Alternatively, you can request a free valuation through CoreLogic if there is a specific property you’re interested in.  

2. Inspect Properties Thoroughly At Home Opens

Attending home opens can help you learn more about the key things to look out for in established properties:

Structure and Foundation

• Check for any cracks in the walls, ceilings, or foundation. Small cracks may be repairable, but larger cracks could indicate more serious structural issues.   
• Visually inspect the floors for any unevenness. Significant unevenness could be a sign of foundation problems.   
• Check that doors and windows open and close properly and seal tightly. This will help prevent drafts and moisture issues later on.   
• Look for any signs of damage or leaks on the roof, such as missing or damaged tiles or stains on the ceiling.

Plumbing and Electrical Systems

• Ask the agent about recent plumbing issues or repairs and confirm the plumbing’s age, as older systems may have rust or wear.
• Check the metre box’s location and whether it’s upgraded; older boxes may not support modern appliances and could pose fire risks if unmaintained, potentially requiring costly replacements. Blown boxes can also damage appliances without surge protection, including built-ins like dishwashers, ovens and dryers.
• If solar panels are installed, confirm their age; older panels might need replacing, and warranties usually don’t transfer to new owners, so budget for potential costs. Visit at different times to check if shadows fall on the panels, compromising their power draw.
• For hot water systems, ask about the last service date, especially if the unit is upstairs or inside. Regular maintenance every 6–12 months helps keep systems reliable.

Heating and Cooling

• If the property has central heating or air conditioning, ask the seller about the system’s age and condition.
  
• Check for signs of adequate insulation, such as thick walls and well-sealed windows and doors. This will help to keep the home comfortable and energy efficient.   

Appliances and Fixtures

• If appliances are included in the sale, check if they are in good working condition. You can add it to the condition of sale that all appliances and fixtures are in good working order at the time of property settlement.
• Check the interior condition, including paint, flooring, and fixtures. Look for water damage, mould, or pest signs. While vintage light fixtures may be stylish, they can often be faulty. Ask about any DIY-installed fixtures, as DIY light installations are illegal in WA.
• Inspect the property’s exterior for damage or neglect, like peeling paint, overgrown landscaping, or a damaged roof.
• If no report has been provided, arrange a pest and building inspection yourself, as visual inspections may miss significant issues. The seller’s permission is required for this, and it can be a condition of the sale offer.

3. Get Your Finances in Order Before Property Settlement

• Saving for your deposit: As a rule of thumb, it is important to save a deposit of at least 5% of the property’s value, but ideally 20% to avoid Lender’s Mortgage Insurance (LMI). Remember that the more you save for a deposit, the less you will have to borrow from the bank. Take extra care of any extra costs that come with buying a property.
• Shop around for the best home loan: Compare interest rates, fees, and features from different lenders to ensure you are getting the best bang for your buck. We recommend seeking the services of an experienced finance broker to compare home loan offers and ways to offset your mortgage repayments.
• Take advantage of government grants: First-time home buyers in Perth are encouraged to buy or build a new property with the first-home-owners grant (FHOG). The grant is $10,000 for a residential property to be used as a primary place of residence. Find out if you are eligible for the grant here.
• Research Keystart: Banks are not the only financing options available to WA first-time home buyers. Keystart is a non-traditional lender that offers low-deposit loans to make home ownership easier and more affordable.

Some Additional Tips for First-Home Buyers

• Be patient: Finding the right property can take time. Don’t rush into making spontaneous decisions. Good things happen to those who wait!
• Stay informed: Do your due diligence and keep your finger on the pulse of any WA property market trends or changes in government policies that may impact you.
• Don’t be afraid to ask questions. If you have any questions throughout the process, ask your real estate agent or conveyancer or obtain legal advice.
• Be prepared to compromise. In today’s high-demand property market, you may need to compromise on some of your preferences, such as location or property size.

By following these tips, you can increase your chances of finding the right property for your needs and make a rewarding investment for the future.

Contact us Today for Your Property Settlement Needs

When you have found your brand-new home, we’re the property settlement agents who will be right here to guide you through your contract. If you are a first-time home buyer wanting to understand more about the settlement process, why not contact our friendly team at KDD Conveyancing today? If you’re looking to learn more about property settlement or conveyancing or you would like to learn more about the WA property industry, then don’t forget to check out our blog for more insights.