West best for first-home buyers

West leads in affordability, income

West best for first-home buyers


By Mina Martin

For the first time, one in 10 purchasers in Western Australia are first-time home buyers with higher incomes and younger ages than the rest of the country, suggesting that, according to mortgage brokerage Lendi, WA may be the best region for those looking to step onto the property ladder.

Surging buyer statistics

Since Jan. 1, first-home buyers have accounted for 11.85% of all home purchases in Western Australia, marking a significant milestone as it's the first time this figure has surpassed 10%.

“This trend not only highlights the attractiveness of the market but also underscores the broader economic momentum in the region,” said Stefan Kandic, a Lendi broker based in Perth.

Economic and demographic advantages

Perth’s housing market has seen a 6% increase in home values during the first quarter, with projections suggesting a rise of up to 16% over the year.

Despite these increases, Perth maintains the lowest median home value among Australia’s capital cities, which makes it particularly appealing to first-home buyers.

Moreover, data revealed that first-home buyers in Western Australia enjoy the highest median incomes in the country at $95,000 and are typically younger than the national average, being 28 years old compared to 31.

“First-home buyers are struggling with a very real supply shortage; however, Western Australia is the only state where housing supply is more or less keeping pace with demand, and on the upside, affordability is so much more appealing if you are looking to enter the market for the first time,” Kandic said.

Financial incentives and opportunities

Recent policy changes have further enhanced the attractiveness of Western Australia for first- home buyers. The threshold for paying no transfer duty has been raised from homes valued up to $430,000 to $450,000, representing a significant saving. For homes priced between $450,000 and $600,000, buyers will now pay a concessional rate, extending previously available benefits.

Benefits of pre-approval for first-home buyers

Lendi Group’s brokers are equipped to guide first-home buyers through the purchasing process with expertise and support.

Lendi stressed the importance of getting financial pre-approval to strengthen buying positions in competitive negotiations. The benefits of pre-approval are clear: it gives buyers a competitive edge, reduces the fear of missing out by clearly defining budget limits, and facilitates a faster transaction process, enhancing the chances of securing a desired property amidst a competitive market.

“If you have surety of your borrowing capacity by getting pre-approval from your broker before putting an offer in for a house, you become a serious contender,” said Sebastian Watkins (pictured above), co-founder and COO of Lendi.

“For first-home buyers, this places you in a position where you are much more appealing to a seller who may be looking to preference an offer with some financial clarity, versus wasting time waiting for finance to be approved with other candidates.”

Lendi clients Stephanie Richardson and Nate Buttrick shared their experiences, underscoring the benefits of financial pre-approval.

“Knowing our financial position and what our limits were meant that we did miss out on some of the homes we liked that had stiff competition but didn’t waste the sellers’ or our time offering something appealing knowing our financing would be rejected,” Richardson said.

They eventually secured a home after their initial offer was revisited due to another buyer’s financing falling through, highlighting the advantage of being financially prepared.

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