Latest news with #REIWA
Perth Now
2 days ago
- Business
- Perth Now
The Perth suburbs where units could be your way onto property ladder
Perth's extraordinarily high rental prices make it cheaper to buy units than rent them in nearly 30 suburbs across the metropolitan area. But the catch is, you need a 20 per cent deposit to buy the apartments. The research highlights how high lease costs are keeping a third of the population stuck in the rent trap, paying off a landlord's mortgage — instead of their own — while they struggle to save the required deposit. President of the Real Estate Institute of WA Suzanne Brown acknowledged the odds are stacked against renters. 'It should always be your goal to exit the rental market — whatever that looks like,' she said. 'Perhaps that is buying something you can afford and renting somewhere you want to live. But buying should always be the long run focus.' Ms Brown said renters should not give up, as she regularly saw examples of people who saved a 20 per cent deposit, sometimes in challenging circumstances. Furthermore, major help was coming for first-home buyers through the First Home Guarantee, which will help eligible buyers to purchase with as little as a five per cent deposit without paying costly lender's mortgage insurance. Research by the Real Estate Institute of WA shows 28 suburbs have median unit rents that are higher than weekly mortgage repayments at 6.05 per cent interest over 30 years. Bayswater, Burswood, Beckenham, Perth and Cannington have the highest rental income versus mortgage cost differential. In Burswood, there is almost a $1000 monthly difference between median mortgage repayments ($2737 per month) and median rental income ($3683 per month). While the REIWA research does not include water, council rates and strata fees, separate research by The West Australian shows it is often still cheaper to buy than rent once these costs are included. A two-bedroom city apartment on Murray St, for example, sold for $518,000 in mid May. With a 20 per cent deposit, the owner pays $575 a week to repay the $414,000 loan over 30 years. Water and council rates, and the strata levy, comes to an additional $103 a weekly, leaving the home owner $678 a week out of pocket. An apartment in this city complex sold for $518,000 in mid May and advertised as a rental two weeks later for $725 a week, making it cheaper to buy than rent. The catch is, you have a deposit. Credit: supplied But the very same apartment has this week been advertised as an unfurnished rental property, on a six-month lease, for $725 a week, leaving the home-owner positively geared from day one, nearly $50 a week in the red. In another example, a two-bedroom, two-bathroom apartment in Bayswater sold for $540,000 in October. Buyers would need a hefty $108,000 deposit to buy it, and repay $600 a week for 30 years under 6.05 per cent interest. A further $35 a week is required for the strata fees, and $59 is required each week for council and water rates. With total weekly costs at $694, the owner is still ahead, given an almost identical apartment around the corner is renting for $740 a week. This two by two Bayswater apartment sold for $540,000 in October 2024. Credit: supplied Another examples includes a modern complex in Burswood, which is currently advertising a one-bedroom apartment, with parking space, for $650 a week rent. However, the neighbouring one-bedroom apartment sold in mid May for $465,000. With a 20 per cent deposit ($93,000) a mortgage- holder would repay about $520 a week for 30 years. An extra $94 is required each week to pay water rates, council rates, strata levies and a special deck levy. With total costs at $614 a week, the owner is still ahead. 'Units are a more affordable entry point to the market than houses, particularly in areas closer to the city and lifestyle attractions, and can be good options for people looking to exit the rental market,' said Ms Brown. This one bedroom unit in this Burswood complex sold recently for $465k. Credit: supplied 'Currently capital growth for the broader unit market is on par with the housing market, driven by the strong demand for property. 'In general though, the rate of growth for apartments — in particular — does tend to be lower than for houses. But that is not often a significant factor for people looking to buy their first home. 'For investors, the unit market usually outperforms the housing market for yield. '
West Australian
25-05-2025
- Business
- West Australian
Smart planning needed and government incentives available to help you step into the property market
While strong price growth over the past couple of years has made buying your first home more challenging, Real Estate Institute of Western Australia (REIWA) President Suzanne Brown said it was still achievable but might require some compromises. 'First homebuyers remain very active in the WA market, with data from the Australian Bureau of Statistics showing first-time homeowners made up 37.7 per cent of all owner-occupier loans in 2024,' she said. 'However, many have had to reassess their expectations, potentially shifting their focus from houses to more affordable options like units, villas or townhouses to get into the market. 'They're also needing to broaden their search to suburbs further from the Perth CBD, where prices tend to be lower. 'Currently, suburbs in Perth's south-east and south-west, along with Midland to the east, are the most affordable suburbs for houses. 'For people looking to be closer to the city, units in Wembley and Bayswater offer affordable opportunities.' Ms Brown encouraged first homebuyers to do their research thoroughly and to not be deterred by median house prices when considering where to buy. 'It is important to remember the median is the middle, and 50 per cent of sales will be below this price,' she said. 'There will still be affordable options in many suburbs – it may just take time and patience to find them in some areas. 'If your preferred suburb is out of your price range, look at neighbouring areas, which are sometimes called bridesmaid suburbs. 'They will be close to the same amenities you find desirable but are usually more affordable. 'I also remind first homebuyers their first house is often a stepping stone along the homeownership path not the final destination. 'Buy what you can afford, pay down the mortgage, and build some equity and upgrade later.' Ms Brown said saving a deposit was one of the greatest challenges facing first homebuyers, particularly in a climate of rising prices. She encouraged them to start saving as soon as possible and to make use of government schemes to help them build a deposit and get a loan. 'The Federal Government's first home super saver scheme lets first homebuyers save a deposit through their superannuation,' Ms Brown said. 'You can apply to withdraw a maximum of $15,000 of your voluntary superannuation contributions from any one financial year to buy your first home. 'Across all years, the maximum amount you can withdraw is $50,000 of personal contributions, plus earnings. 'First homebuyers should also know you don't need to have a 20 per cent deposit to get a loan. 'However, if you have less than 20 per cent, you will have to pay lenders mortgage insurance (LMI).' Ms Brown said there were further government schemes addressing this. 'Keystart is a State Government initiative allowing eligible buyers to get a loan with as little as a two per cent deposit and pay no LMI,' she said. 'The Federal Government's First Home Guarantee scheme allows eligible buyers to access a loan with a five per cent deposit. 'The government guarantees the remaining 15 per cent, negating the requirement for LMI. 'The Federal Government is also expected to launch its Help to Buy shared equity scheme later this year. 'It will allow buyers to benefit from a smaller mortgage and lower repayments, with the government taking an equity share of up to 40 per cent of the purchase price of new homes and 30 per cent of the purchase price of existing homes.' Ms Brown said there were several other grants and measures, which could help first homebuyers get their foot on the property ladder. 'If you buy or build a new home, you may be eligible for the $10,000 First Home Owner Grant,' she said. 'First homebuyers may also qualify for a $2000 grant from the Home Buyer Assistance Account to help with the incidental costs of buying a home such as settlement fees. 'Stamp duty is another major challenge facing homebuyers, as it is an additional cost on top of saving for a deposit.' According to Ms Brown, earlier this year, 63 per cent of 15,000 respondents to a Housing Issues Survey on agreed stamp duty was a significant barrier to homeownership in WA. 'There are stamp duty concessions to help address this,' she said. 'If first homebuyers buy a home valued at $500,000 or less, they will pay no stamp duty, saving up to $18,000. 'They will pay a concessional rate on purchases valued up to $700,000 in the Perth metropolitan area and Peel region or up to $750,000 outside of these areas. 'REIWA has been advocating for these thresholds to be lifted for some time, and we were pleased when the State Government announced an increase in March. 'However, rising prices mean these changes could quickly become redundant. 'We would like the State Government to go a step further and link the thresholds to REIWA's median sale prices – as Keystart has done for its products – so they can move with the market and remain accessible to as many first homebuyers as possible.' Ms Brown offered some additional tips for first homebuyers. 'Visit a mortgage broker to get an accurate idea of how much you can borrow,' she said. 'Get your finance pre-approved and speak to the selling agent about what you can do to strengthen your offer. 'Consider using a buyer's agent and, lastly, leave plenty of time for settlement.' is the home of Western Australian real estate, representing more than 1350 member agencies or 90 per cent of the sector. With more than 100 years of industry leadership and local knowledge, it is uniquely placed to provide in-depth market intelligence free of charge.
West Australian
18-05-2025
- Business
- West Australian
Bridging the age gap through housing diversity
With property values surging an extraordinary 75 per cent since March 2020, thousands of Western Australian homeowners find themselves asset-rich, yet lifestyle poor, trapped in family homes no longer serving their needs while younger generations struggle to gain a foothold in the neighbourhoods they grew up in. This intergenerational housing disconnect threatens the fabric of established communities across the city. Perth's property market presents unique characteristics relevant to housing diversity. With REIWA reporting that Perth's median house price reached $775,000 in early May, affordability challenges are acute for first-time buyers. The State Government has responded through its Housing Diversity Pipeline initiative, encouraging innovative development on government-owned land, particularly near transport nodes. Housing diversity delivers multiple advantages for communities across Perth. Thoughtfully designed apartments in established suburbs create opportunities for older residents to downsize without abandoning familiar neighbourhood settings. This housing transition simultaneously releases larger family homes into the market, often resulting in neighbourhood rejuvenation while preserving community character. The predominant demographic in central Perth comprises those aged 20-29, according to the Australian Bureau of Statistics, with childless couples forming a significant household type. This contrasts with many outer suburbs where traditional family households predominate, highlighting the need for diverse housing options across different areas to serve various life stages. Successful diverse developments incorporate elements appealing across demographic boundaries – adaptable living spaces, universal design principles ensuring accessibility and communal facilities fostering intergenerational interaction. When these elements combine, developments can successfully house multiple generations, creating naturally balanced communities. For WA, housing diversity succeeds best when developments integrate harmoniously with existing community fabric. This requires architectural design respecting neighbourhood character while providing contemporary living standards, thoughtful transition zones between development and surrounding buildings, and ground-floor activation benefiting the broader community. Local planning frameworks must evolve to support housing diversity objectives in the WA context. Requirements for dwelling size variations within developments can ensure mixed demographic appeal while design guidelines mandating accessibility features help to create developments serving diverse resident needs. Housing diversity represents an essential strategy for maintaining vibrant, inclusive communities in established suburbs. By providing appropriately designed apartments appealing across demographic boundaries, developers help to address intergenerational housing needs while enhancing community sustainability, delivering benefits not only for residents but also for the broader social and economic fabric of Perth's urban areas. Recent Australian Housing and Urban Research Institute research indicates poor-quality housing with inadequate environmental performance constitutes a public health issue regardless of density level. The intensification process offers WA decision-makers a timely opportunity to elevate housing quality standards more in line with international practices as older, underperforming housing stock is replaced.
Sydney Morning Herald
13-05-2025
- Business
- Sydney Morning Herald
WA news LIVE: The WA town where house prices are soaring
Latest posts Latest posts 9.31am The WA town where house prices are soaring By Geraldton is on a hot streak with the coastal city topping the charts as the best-performing regional centre for the March 2025 quarter, according to fresh figures from REIWA. Median house prices jumped by 6.5 per cent to hit $490,000, up from $460,000 just three months earlier. It was the second consecutive quarter that the regional centre recorded the strongest price growth. REIWA regional spokeswoman Peta McKenzie said the Geraldton market recorded continued growth over the March quarter, driven by strong investor activity. 'There was significant interest from eastern states investors, particularly for dwellings in the $400,000 to $600,000 range,' she said. 'They were looking for well-presented homes offering reasonable yields. These properties generally attracted multiple offers and, in some cases, sold well above the asking price.' But McKenzie said investor activity had placed pressure on local buyers. 'REIWA members report investors often secured properties ahead of local owner occupiers by offering slightly more,' she said. 'However, since the March quarter, the level of investor activity has softened slightly, and we're hearing reports of a more even mix of buyers again.' Eight of the regional centres recorded price growth over the quarter. Port Hedland was the only regional centre where the median house sale price declined. Annually, Bunbury saw the highest growth, with the median house sale price rising 25.9 per cent to $616,995. Geraldton followed closely, up 25.6 per cent over the year to $490,000. 9.31am Across the nation and around the world Here's what's making headlines across the nation and around the world: The making of Sussan Ley as a federal cabinet minister came a decade ago when she was given a classic hospital pass. Anthony Albanese's opponent achieved something that Labor couldn't. He helped voters forget about the cost-of-living crisis, writes Ross Gittins. US Masters champion Rory McIlroy will play in this year's Australian Open at Royal Melbourne in a major coup for Golf Australia. Overseas, Cassandra Ventura says her life became dominated by the drug-fuelled sexual encounters organised at the behest of her then-boyfriend and record label boss Sean 'Diddy' Combs, telling a jury the longest of these sessions, called 'freak-offs', lasted four days. And US Health Secretary Robert F. Kennedy Jr posted photos on the weekend of himself and his grandchildren swimming in a contaminated Washington creek where swimming is not allowed because it is used for sewer run-off.
The Age
13-05-2025
- Business
- The Age
WA news LIVE: The WA town where house prices are soaring
Latest posts Latest posts 9.31am The WA town where house prices are soaring By Geraldton is on a hot streak with the coastal city topping the charts as the best-performing regional centre for the March 2025 quarter, according to fresh figures from REIWA. Median house prices jumped by 6.5 per cent to hit $490,000, up from $460,000 just three months earlier. It was the second consecutive quarter that the regional centre recorded the strongest price growth. REIWA regional spokeswoman Peta McKenzie said the Geraldton market recorded continued growth over the March quarter, driven by strong investor activity. 'There was significant interest from eastern states investors, particularly for dwellings in the $400,000 to $600,000 range,' she said. 'They were looking for well-presented homes offering reasonable yields. These properties generally attracted multiple offers and, in some cases, sold well above the asking price.' But McKenzie said investor activity had placed pressure on local buyers. 'REIWA members report investors often secured properties ahead of local owner occupiers by offering slightly more,' she said. 'However, since the March quarter, the level of investor activity has softened slightly, and we're hearing reports of a more even mix of buyers again.' Eight of the regional centres recorded price growth over the quarter. Port Hedland was the only regional centre where the median house sale price declined. Annually, Bunbury saw the highest growth, with the median house sale price rising 25.9 per cent to $616,995. Geraldton followed closely, up 25.6 per cent over the year to $490,000. 9.31am Across the nation and around the world Here's what's making headlines across the nation and around the world: The making of Sussan Ley as a federal cabinet minister came a decade ago when she was given a classic hospital pass. Anthony Albanese's opponent achieved something that Labor couldn't. He helped voters forget about the cost-of-living crisis, writes Ross Gittins. US Masters champion Rory McIlroy will play in this year's Australian Open at Royal Melbourne in a major coup for Golf Australia. Overseas, Cassandra Ventura says her life became dominated by the drug-fuelled sexual encounters organised at the behest of her then-boyfriend and record label boss Sean 'Diddy' Combs, telling a jury the longest of these sessions, called 'freak-offs', lasted four days. And US Health Secretary Robert F. Kennedy Jr posted photos on the weekend of himself and his grandchildren swimming in a contaminated Washington creek where swimming is not allowed because it is used for sewer run-off.
