It’s no secret that the Perth property market is... well... hot property! At the start of 2021, REIWA experts estimated house prices would rise 15% - halfway through the year and the proof is in the numbers. The rental vacancy rate is at a very low 1%, meaning there are fewer properties available, driving up the rent prices. However, while house and rent prices continue to climb, a new opportunity is emerging for first home buyers.
Spurred on by low interest rates, REIWA statistics show that it's currently cheaper to buy than rent in over one hundred Perth suburbs. REIWA president Damian Collins said he’s “never seen the rent-versus-buy equation so heavily in favour of buying”.
“It's more affordable to pay the costs associated with servicing a home loan than pay the weekly rent in 112 Perth suburbs, which should give tenants encouragement that home ownership is within reach,” Mr Collins said.
This surprising news presents renters with an opportunity that may have previously been out of reach: the option of owning their own home.
“The bulk of the suburbs on this list fall within the traditional first home buyer price range,” added Mr Collins.
We have seen many first and second home buyers take advantage of the market and choose to build their very own home. With our affordable and well located house and land packages, and repayments starting from just $269 per week* - why wouldn't you?!
Check out the median rental price across key areas of Perth 🔍
|Banksia Grove||$400||Henley Brook||$450|
* Data correct at 19/08/21 as per REIWA's suburb profiles
Benefits of owning your own home
Aside from the affordability vs renting we mentioned above, there are more great benefits to being a homeowner.
- It’s an investment
Instead of paying off someone else’s mortgage, you’re investing in your own future. Current low interest rates also mean you have the opportunity to pay down your mortgage faster, increasing the amount of equity you have. Equity is the amount of your home that you own (i.e. the difference between the current market value of your home and your remaining loan balance). You could make a healthy profit if you choose to sell, or you can tap into your equity to invest in other assets such as an investment property, car, or other personal goals you may have.
- If you build, you can create the home that’s perfect for you
Building a home gives you so much choice! From location to floor plans, to colour schemes and style, you can truly build the home of your dreams. (In fact, Easystart offers a fantastic range of House & Land Packages where mortgage repayments are cheaper than renting - but more on this soon!)
- It’s stable
Instead of being at the mercy of your landlord’s decision to renew or end your lease, you will always have a home that’s yours, as well as more predictable expenses and loan repayments to keep your budget on track. Your own home also offers you a private sanctuary with no property managers or annoying housemates to contend with.
Put us to the test 🖩
Would you like to see if we can create a ‘cheaper-than-renting’ House & Land package for you?
Why not reach out to an Easystart New Homes consultant. There's no obligation - just genuine advice and all the info you need to make the decision that’s best for you.
Fill out the form below and we’ll be in touch.
* Terms & Conditions apply. Principal & Interest Loan Repayments of $269 per week are based upon a 10% deposit on the fixed interest rate of 2.24% on the P&N Bank - Fixed 2 years Owner Occupied Loan with package. The interest rate is effective 17th December 2021 and is subject to change. Fees & charges may apply including any applicable Lenders Mortgage Insurance. The Comparison rate is 3.66% and is based on Principal & Interest Loan Repayments on a loan amount of $294,750 over a loan term of 30 years. Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. All finance services provided by Westgate Financial Services, ACL. 410232. Quoted rates are correct as on publication date.