If you’re thinking of purchasing real estate in Perth, here’s everything you need to know regarding finance and property ownership.
As the rules around property ownership vary between each Australian state or territory, it can be difficult to know what information and legislation is relevant to you.
From the first home owner grant (FHOG) to stamp duty to property and land ownership, work out what you need to know if your property is located in Perth, Western Australia.
Administered by the Office of State Revenue (OSR), the FHOG offers eligible purchases a one-off grant to assist with the purchase of a new home or land. First home buyers purchasing or building a new home may receive a grant of up to $10,000.
The current FHOG applies to new residential dwellings only and does not apply to established homes, vacant land, business premises, holiday houses or minor renovations to an existing home. Where a first home owner purchases a home that has undergone substantial renovations, they may be eligible to apply.
There are no income or assets tests to qualify for the FHOG.Back to top
The first home owner rate (FHOR) of duty is available on transfers for eligible purchasers who:
- Qualify for the FHOG,
- Would otherwise have qualified for a grant had consideration been given or for the purchase of an established home,
- Are an Indian Ocean Territory resident buying their first home
For further details of the FHOG and the FHOR of duty (including duty thresholds), visit our FHOG WA page.Back to top
The Home Buyers Assistance Account provides first home buyers with financial support. It offers a grant of up to $2,000 to cover expenses for first home buyers when they buy an established or partially built home that is valued at $400,000 or less.
The grant can be used to reimburse expenses including mortgage registration fees, conveyancing fees, valuation fees, mortgage insurance premiums and more.
For information about the criteria of funding for the home buyers assistance account, check out our FHOG WA page.Back to top
Transfer duty in Perth is a general revenue tax which is stipulated by the Duties Act 2008 on dutiable transactions including the transfer of property.
According to the Western Australian Department of Finance, transfer duty applies to dutiable transactions over a dutiable property. The most common dutiable transactions include:
- A transfer of dutiable property or agreement for the transfer of dutiable property
- A declaration of trust over a dutiable property
- A foreclosure of a mortgage over a dutiable property
- A partnership acquisition
- An acquisition of new dutiable property
In other words: if you buy a property, you have to pay stamp duty.
The individual liable for duty must submit the transaction with the OSR within two months. This typically involves lodging the agreement that governs the transaction.
How do I pay duty?
You can pay duty through Online Duties which is an online service that enables you to assess and pay duty. To pay selected duties, visit Revenue Online on the Western Australian Department of Finance website.
Otherwise, you can pay duty by post or in person at the Georges Terrace office in Perth.
For more details about how to pay duty, visit the Western Australian Department of Finance website.
For duty rates and information about duty exemptions, visit our stamp duty WA page.Back to top
Property ownership in Western Australia (WA) is administered by Landgate. Whether you’re buying or selling property, changing property ownership or just looking for general information, Landgate distributes all relevant application forms and information.
Changing title details
How to add or remove someone’s name from property title
If you wish to add or remove a partner as a proprietor/owner of the property (e.g. because of marriage or divorce), here’s what you need to do:
- Complete transfer form. You’ll need to complete and submit the transfer form which you can access by using the title search on the Landgate website.
- Present transfer to OSR. Next, ensure that the transfer has been assessed for stamp duty by OSR.
- Organise Duplicate Certificate of Title. If the property is mortgaged, ensure the Duplicate Certificate of Title has been supplied to Landgate by the financier or otherwise ensure that you have obtained an original letter of consent from the lender.
- Lodge transfer form. You then need to lodge the original signed transfer form (with required evidence) and ensure that the registration fee payment is provided.
For details about the paperwork required, check out our WA property ownership page.Back to top
The law in Western Australia (WA) does not require that contracts for the purchase of real estate contain a cooling-off period. This means that you cannot get out of a contract to buy property if you change your mind.
If you do change your mind, you could potentially forfeit the total property sale price.Back to top
Demand for real estate in Perth was largely stimulated by the mining investment boom in Western Australia (WA) which increased capital growth and high rental yields, however in recent years demand for property in Perth has slowed.
In 2000, the median house price in Perth was $258,000 and in 2015 it was $817,500. Below is a historic sales and growth chart for the sales and median sales price for houses in Perth.
Source: APM PriceFinder
The main demographic profiles of those living in Perth include couples without children (68%) and couples with children (20%).
Renting is the preferred home ownership method followed by purchasing at 40% and 24% respectively.
While it’s never advised to time the market, some of the top investment suburbs for Perth according to Smart Property Investment in 2015/2016 include:
- South Perth
If you need help comparing home loan options, find a local mortgage broker in Perth to help you understand your borrowing options. A broker has expert knowledge of the home loan industry so they can help you narrow down your search to find a product and lender that matches your borrowing needs.
Keep in mind that brokers typically offer their services free of charge, so it’s worth speaking to one in order to find a competitive deal.
Also, learn more about the average mortgage cost and property prices in Perth.Back to top
From different features, benefits and fees, find out how you can compare home loans from different providers to ensure that you get the right loan for you.
Aussie Home Loans is both a lender and a mortgage broker, and offers a range of services.
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