Costs of Purchasing a Property in Perth, Western Australia

There are always 2 main groups of real estate investors whom I have encountered throughout my 9 years of marketing international properties. The first group of investors are those who want our expertise and services to find cash-flow properties as part of their alternative assets portfolio, whereas the second group of investors are those who just want to do-it-yourself (DIY) and find good deals on their own.

 

Regardless which group of those investors belong to, they all have the same set of questions about the costs of buying a property in Perth, Western Australia (for example). Hence, I have decided to spend some money and time in sending out this email to share with you on the costs of buying a property in country like Australia. 

Types of main costs (for example, buying an apartment in Perth, Western Australia):

(A)   Costs of acquisition

 

·        Legal fee – I suggest DIY investors should negotiate the fee with the lawyer.

 

·        Foreign Investment Review Board (FIRB) – as of 2021, this fee has increased.

 

(B)   Costs of settlement

 

·        Stamp duty or transfer duty – take note that foreign buyers have to pay a surcharge of 7%.

 

·        Transfer of title

 

(C)   Costs of ongoing

 

·        Body corporate – similar to our Singapore MCST charges

 

·        Council rate and water rate – these are the annual rates. Note that the water rate is not referring to utility usage. These rates are to be paid by the landlord (i.e. unit owners).

 

·        Personal income tax.

 

·        Capital gain tax (payable when you decide to sell and make a capital gain).

 

·        Property management fee – I suggest DIY investors should negotiate the fee with the property manager.

 

I hope my sharing will help those DIY investors to get the best deals in their own capacity. For those investors who want our expertise and services, we have already done the first part in negotiating good deals with the vendors, lawyer and property management company.

 

Finance options are available. Discover how to unlock your existing equity to secure a new apartment. 

Please call me at 8100 3386 or email me if you need any assistance.
 
Thank you for your kind attention.

I look forward to providing you real estate investment solutions available. 

Stay safe and keep healthy.

Is Perth Property Moving Up or Down? Think Hard Again.

Some investors whom I talked to recently asked me is Perth property having an upward trend or downward trend. To share my opinion with them, I managed to search an article from Herron Todd White (one of the largest independent property valuation and advisory groups in Australia), and the picture of the article in this email was from this website link: https://static.htw.com.au/HTW-month-in-review-February-2021.pdf

Below are some of the key pointers from the article on Western Australian property market for your 2-3 mins reading:

 

(1) Property sales activity has increased 41.3% year-on-year (i.e. Dec’2019 to Dec’2020)

 

(2) Employees in the mining sector required to reside in Perth state to avoid regular quarantine periods

 

(3) Record low interest rates of 0.1% in Australia

 

(4) Record low vacancy rate of 0.8%

 

(5) Median rents up by 8.5% from $350 to $380 per week, all whist COVID-19 protocols result in rents unable to be raised for sitting residential tenants

 

(6) 1000 international arrivals a week expected back into Perth with domestic borders opening up

 

(7) State government avoiding a deficit and forecasting a $1.2 billion surplus in 2020

 

(8) Mining resources such as iron ore price up from USD66.20 per tonne to USD96.60

 

(9) Supply of rental listings at the end of Dec’20 were down 31% from the same time a year ago (i.e. 13,300 properties to 9,167)

 

(10) Given these factors, Herron Todd White team could predict that $500,000 to $1.5 million price range in established suburbs will be a key market segment to watch

Is Perth property going for an upswing or you reckon it is not?

Please feel free to share your thoughts and views in my blog or Facebook page.

I look forward to hearing your valuable insights.

Stay safe and keep healthy.