A Letter to First Home Buyers

Buying your first house is always very exciting! We are sure by now that you have already had in your mind all the things you want to put inside your house. You would have driven around the suburb of your choice, going into various display houses, planning all the beautiful stuff for your soon-to-be home.

As of the writing of this letter (30 Oct 2018), a lot of experts agree that Western Australia property market has hit the bottom. We have had some good years through the mining boom and peaking at about 2014/15. It has since gone through a correction. What does this mean to you as First Home Buyer? It’s a good time to buy! You can get a lot of bargains in WA.

CHALLENGES FOR FIRST HOME BUYERS

A lot of our First Home Buyer (FHB) clients came from an experience where they just buy anything that they can afford. Without further research and consideration, FHBs often just go straight looking into the suburbs they’re familiar with, or suburbs which price range is within their budget. This can present a lot of potential problems for them. Let us explain:

• Location Risk
  • A lot of FHB areas are located so far away from the CBD which most of the jobs are located. Travel time can hit 1 hour if not more. While you might be able to afford the area, the potential accumulated stress by travelling that long day-in-day-out can put a lot of pressure on you. 
• Neighborhood Risk
  • FHB areas are often located in the “cheaper” areas, meaning, you might have a lot of people with low income, or having jobs in the first place if at all. This can present a higher risk of increased crime rate and social disturbances.
• Growth Risk
  • FHB areas are generally populated with other FHBs who might be earning basic-medium level salary. Generally, as soon as an FHB gets a promotion, he/she would be considering to move to a better suburb, closer to the CBD. Because of this, there might be not much salary growth in the suburb, which, can put a ceiling on the growth of the property price in the area.
  • Put it this way, why would someone pay a premium price in an FHB area which, with the same amount of money, the buyer would have been able to buy in a better suburb closer to the CBD.

And further, a lot of FHBs are doing home-and-land packages ie. purchasing a land then building a new house. Dealing with a builder for the first time can present a huge risk for FHBs. They really need to know the right questions to ask, otherwise, they might be paying way too much for their house.

We have had clients who used to build a $440k house in a $350k area. Straight away, they lost money. The problem was, they didn’t know the right questions to ask.

HOW WE CAN PROVIDE VALUE

Easy Buyer’s Agent has access to information on 300+ suburbs around Western Australia, including PRE, POST, ON, OFF-market properties. You as First Home Buyer doesn’t have to rely on just what you know. We have developed a property selection system whereby we can profile you so that we can match you with the best property in the best area possible.

Further, we get you to simply stand behind us and let us do all the research, talking, negotiations, dealing with Real Estate Agents, etc. That way, you’re sheltered from all the risks and potential money pitfalls we mentioned earlier. Unless you know what questions to ask, you have to be really careful. We have worked with a lot of good REA and builders, however, honestly, they are never on your side. They are people selling products. Once they get paid their commission, the onerous is on you!

CALL TO ACTION AND CONCLUSION

You don’t have to be alone in the property purchase journey. We have a lot of insights and information we would like to share with you. The last thing you want is for your dream home to turn into nightmare. Please get in contact with us now by calling +61 404 457 754 or email info@easybuyer.com.au.