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Choosing property and a price range

Now that you have completed your budget, you should have an idea of what price range you can buy your first home in comfortably. If you didn't do your budget and want to speak to someone about your borrowing and purchasing power please click here.

Your borrowing range will be 90-100% of the purchase price of the property normally, so if you were to go with a bank lender and you only want a maximum mortgage of $280,000, at 90% your purchase price should be around the $305,000 mark, allowing a little extra in the loan amount for a mortgage insurance premium. If you were looking at a 95% loan against a $305,000 purchase price, this figure would be around $290,000 with mortgage insurance added in. However, this is just a guide and if you are looking for more precise figures, please contact one of our finance brokers for a more detailed costing by, clicking here.

So now that you have an idea of what you can afford, you can go on to decide where you would like to live and what sort of home you would like to be in. It pays to talk to whomever you can, to find out which areas are good to buy in or near. Talking to as many real estate agents you come into contact with will help give you an idea, or you can look at the Real Estate Institute of Western Australia's websites research page to give you an idea of how the suburbs you are looking at have performed, what percentage of rentals are in the area, median rents, prices and incomes are all listed as well as distance from the Perth GPO. Researching can prove a very useful tool, especially if you are looking to buy in an underperforming suburb, click here to check out their research pages. Alternatively if you know where you want to live, click here to be taken to our property section.

We will go into a little more detail further into this section, looking at the pros and cons of building and buying established, what to look out for when buying a property and letting a professional do all of that research for you.

The 7 steps to buying your first home