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Buying property in Perth involves a structured process that requires careful financial planning and understanding of local regulations.
The Perth property purchase process typically takes 6-8 weeks from making an offer to settlement, with key steps including pre-approval, property search, inspections, contract negotiation, and final settlement through a conveyancer or settlement agent.
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The property buying process in Perth starts with calculating your borrowing capacity and getting pre-approval from a lender.
After finding a suitable property, you'll arrange inspections, make an offer, negotiate the contract, and complete settlement within 30-45 days.
| Step | Timeline | Key Actions |
|---|---|---|
| Pre-Approval | 1-2 weeks | Calculate borrowing power, gather documents, apply to lender |
| Property Search | 2-8 weeks | Browse realestate.com.au, domain.com.au, attend inspections |
| Building/Pest Inspection | 3-5 days | Book licensed inspectors, review detailed reports |
| Offer & Contract | 1-3 days | Submit written offer, negotiate terms, sign contract |
| Settlement Preparation | 30-45 days | Engage conveyancer, arrange finance, pay stamp duty |
| Final Inspection | 1-2 days before settlement | Check property condition, verify inclusions |
| Settlement | Settlement day | Transfer funds, exchange keys, complete ownership transfer |
How do I figure out how much I can borrow to buy a property in Perth?
Your borrowing capacity in Perth depends on your income, expenses, existing debts, and number of dependents.
Major Australian banks like Commonwealth Bank, NAB, ANZ, and Westpac offer online borrowing power calculators that give you an immediate estimate. These calculators consider your gross annual income, monthly expenses, credit card limits, personal loans, and other financial commitments. As of September 2025, most lenders assess your capacity using a serviceability buffer of around 3% above the actual interest rate.
You'll typically need a deposit of at least 10% of the property value, though 20% is recommended to avoid Lenders Mortgage Insurance (LMI). For example, if you're looking at a $700,000 property in Perth's inner suburbs, you'd need between $70,000-$140,000 as a deposit. The remaining amount becomes your loan principal, which determines your borrowing requirements.
Your debt-to-income ratio should generally not exceed 6-7 times your annual gross income for most lenders. If you earn $100,000 annually, your maximum borrowing capacity would likely be around $600,000-$700,000, depending on your other financial commitments and the lender's specific criteria.
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What's the best way to get pre-approval from a bank or lender before I start looking?
Pre-approval gives you a conditional commitment from a lender for a specific loan amount before you start house hunting.
Start by gathering essential documents including recent payslips (usually last 2-3 months), tax returns, bank statements for the past 3-6 months, proof of savings, and details of any existing debts or assets. You'll also need identification documents like your driver's license and passport.
Submit your pre-approval application online through your chosen lender's website or visit a branch. Major banks typically process pre-approval within 3-5 business days, while mortgage brokers can help you compare options from multiple lenders simultaneously. Pre-approval is usually valid for 90 days, though some lenders extend this to 120 days.
Remember that pre-approval is conditional and not a guarantee. If your employment status, income, or financial circumstances change during the property search period, the lender will reassess your application. Maintain stable employment and avoid taking on new debts during this period to ensure your pre-approval remains valid.
Having pre-approval strengthens your position when making offers, as sellers and agents know you have finance backing and can settle within the required timeframe.
Where should I look to find properties for sale in Perth that match my budget and needs?
The two primary property search platforms in Perth are realestate.com.au and domain.com.au, which list the majority of available properties.
These platforms allow you to filter searches by suburb, price range, property type, number of bedrooms, and special features. Use your pre-approval amount as the upper limit when setting price filters. For new builds and house-and-land packages, specialized websites like EasyStart Homes and WA Homebuyers Centre offer comprehensive options in developing suburbs.
With a $700,000 budget as of September 2025, you can target inner-city apartments in suburbs like Subiaco, West Perth, or Maylands, or larger family homes in outer suburbs such as Aveley, Butler, Balga, or Caversham. The choice depends on your priorities regarding proximity to the city center versus property size and amenities.
Set up email alerts on these platforms to receive notifications when properties matching your criteria become available. Also consider attending open homes regularly to get a feel for different areas and property types within your budget range.
Real estate agents in your target suburbs can also provide off-market opportunities and insights into upcoming listings before they appear online.
How do I arrange a building and pest inspection once I find a property I like?
Building and pest inspections are crucial steps that should be completed before making an unconditional offer on any Perth property.
Contact licensed building inspectors in Perth through professional associations like the Australian Institute of Building Surveyors or search online directories. Most real estate agents can also recommend trusted local inspectors. Book inspections as soon as possible after identifying a property of interest, as good inspectors can be busy during peak buying seasons.
A comprehensive building inspection typically costs $400-$800 depending on the property size and age, while pest inspections cost an additional $200-$400. Many inspectors offer combined packages at a discounted rate. The inspection usually takes 2-4 hours and covers structural elements, electrical systems, plumbing, roofing, and potential pest issues.
You'll receive a detailed written report within 24-48 hours highlighting any defects, safety concerns, or maintenance issues. Major problems like structural damage, electrical hazards, or significant termite activity can be grounds for renegotiating the purchase price or withdrawing your offer if you've included appropriate conditions in your contract.
Always attend the inspection personally if possible, as the inspector can explain findings on-site and answer immediate questions about the property's condition.
What's the process for making an offer on a property in Perth?
Making an offer in Perth involves submitting a written proposal through the listing agent using an "Offer and Acceptance" form.
Your initial offer should be based on comparable sales in the area, the property's condition, and current market conditions. In Perth's competitive segments, offers are often made at or close to the asking price, while in slower markets, there may be more room for negotiation. Research recent sales of similar properties using online tools or ask your agent for a comparative market analysis.
Include important conditions in your offer such as finance approval (typically 14-21 days), satisfactory building and pest inspections (usually 7-14 days), and any specific requirements regarding inclusions like fixtures, fittings, or appliances. The settlement period is usually negotiated between 30-45 days but can be adjusted based on both parties' needs.
Once the seller accepts your offer, the agent prepares a formal Contract of Sale. This becomes legally binding once signed by both parties, so ensure you understand all terms before signing. Consider having a lawyer or conveyancer review the contract before you commit.
Be prepared to pay a holding deposit (usually $1,000-$5,000) when your offer is accepted, which demonstrates your serious intent and is typically deducted from the final settlement amount.
How do I understand and negotiate the contract of sale before I sign it?
The Contract of Sale is a legally binding document that outlines all terms and conditions of your property purchase.
Key sections to review include the purchase price, settlement date, included fixtures and fittings, any special conditions, and the cooling-off period (if applicable). In Western Australia, there's typically a 5-day cooling-off period for most residential purchases, though this doesn't apply to auction sales or if you waive this right.
Pay close attention to what's included in the sale - items like light fixtures, curtains, air conditioning units, and garden sheds should be clearly specified. Also check for any encumbrances on the property title, council rates adjustments, and responsibility for various costs during the settlement period.
Common negotiable elements include the settlement date, included items, who pays for certain inspections or repairs, and sometimes the purchase price if issues are discovered during inspections. You can request changes through your agent, but remember that the seller isn't obligated to agree to modifications.
Consider engaging a conveyancer or property lawyer to review the contract before signing, especially if you're unfamiliar with property law or if the contract contains unusual clauses. This typically costs $150-$300 but can save significant money and stress later.
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What's the role of a settlement agent or conveyancer, and when do I need to hire one?
A settlement agent or conveyancer handles the legal and administrative aspects of your property purchase from contract signing to final settlement.
Their responsibilities include reviewing the Contract of Sale, conducting property title searches, liaising with your lender and the seller's representative, calculating settlement adjustments for rates and taxes, preparing settlement statements, and coordinating the actual settlement meeting. They also ensure all legal requirements are met and protect your interests throughout the process.
Hire a settlement agent or conveyancer as soon as your offer is accepted and before signing the contract. This timing allows them to review the contract terms and advise you of any potential issues before you're legally committed. Settlement agents typically charge $800-$1,500 for their services, depending on the property value and complexity of the transaction.
In Western Australia, you can choose either a settlement agent (who specializes specifically in property settlements) or a conveyancer/lawyer (who handles broader legal matters). Both are qualified to manage your settlement, so the choice often comes down to personal preference, cost, and specific service offerings.
Your settlement professional will keep you informed throughout the process and coordinate with all parties to ensure settlement occurs smoothly on the agreed date.
How long does the settlement process usually take in Perth, and what happens during it?
The settlement process in Perth typically takes 30-45 days from the contract signing date, though this can vary based on the agreed terms.
During this period, your settlement agent works behind the scenes to prepare all necessary documentation, coordinate with your lender to ensure finance approval and funding arrangements, conduct final title searches to confirm clear ownership, and calculate adjustments for council rates, water rates, and strata fees if applicable.
Key milestones during settlement include finalizing your home loan (usually 2-3 weeks before settlement), conducting the final property inspection (typically 1-2 days before settlement), and preparing the settlement statement showing all costs and adjustments (usually provided 2-3 days before settlement).
On settlement day, your settlement agent meets with the seller's representative at the settlement office to exchange documents and funds. This includes transferring the purchase price from your lender to the seller, paying stamp duty and other government charges, registering the new title in your name, and arranging for keys to be released.
You don't typically need to attend the settlement meeting personally, as your settlement agent handles everything on your behalf. You'll usually receive confirmation and keys on the same day once settlement is complete.
What upfront costs besides the purchase price should I prepare for in Western Australia?
Property purchase costs in Perth extend well beyond the purchase price and can add 5-7% to your total investment.
| Cost Type | Typical Range | When Paid |
|---|---|---|
| Stamp Duty | $13,000-$26,000 (for $500k-$700k property) | At settlement |
| Building & Pest Inspection | $600-$1,200 combined | Before offer acceptance |
| Settlement Agent/Conveyancer | $800-$1,500 | At settlement |
| Loan Establishment Fees | $200-$800 | At loan approval |
| Home Insurance | $800-$2,000 annually | Before settlement |
| Title Search & Registration | $200-$400 | At settlement |
| Moving Costs | $1,000-$3,000 | After settlement |
Stamp duty is your largest additional cost and varies based on the property value and your status as a first-home buyer or foreign purchaser. Western Australia offers stamp duty concessions for eligible first-home buyers, potentially saving thousands of dollars.
Budget for immediate post-settlement expenses like utility connections, council rates (if not adjusted at settlement), and any immediate maintenance or improvements needed before moving in.
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What are the common mistakes buyers make when reviewing the contract of sale in Perth?
The most frequent mistake is not thoroughly reading all contract terms and conditions before signing.
Many buyers focus solely on the purchase price and settlement date while overlooking crucial details like included fixtures and fittings, special conditions, or title restrictions. This can lead to disputes at settlement when expected items aren't included or when unknown encumbrances affect the property use.
Another common error is not understanding the implications of waiving cooling-off periods or building inspection conditions to make offers more attractive. While this might help secure a property in competitive markets, it eliminates important protections and can result in costly surprises after purchase.
Buyers often fail to verify that all verbal promises or agreements made during negotiations are included in the written contract. If the seller agreed to include certain appliances or complete specific repairs, these commitments must be documented in the contract to be legally binding.
Additionally, many purchasers don't carefully check the settlement statement preparation timeline and cost adjustments, leading to unexpected expenses at settlement. Understanding how council rates, water rates, and strata fees are calculated and adjusted between buyer and seller is essential for accurate budget planning.
How do I avoid issues with finance approval falling through after making an offer?
Maintaining stable financial circumstances throughout the settlement period is crucial for avoiding finance approval problems.
- Keep your employment status unchanged - Avoid changing jobs, reducing work hours, or taking unpaid leave during the settlement period, as lenders may reassess your application
- Don't take on new debts - Avoid applying for credit cards, personal loans, or car financing, as these affect your debt-to-income ratio and borrowing capacity
- Maintain your savings levels - Don't spend your deposit or use savings for large purchases, as lenders conduct final checks before settlement
- Respond promptly to lender requests - Provide additional documentation or information immediately when requested to avoid processing delays
- Stay in regular contact with your broker or lender - Regular updates help identify and resolve potential issues before they become problems
Include appropriate finance conditions in your contract, typically allowing 14-21 days for formal approval. This gives you legal protection to withdraw from the purchase if your loan application is ultimately unsuccessful.
Consider having backup lender options identified during the pre-approval process, so you can quickly pivot to alternative financing if your primary lender encounters issues.
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What pitfalls should I watch for during final inspections before settlement in Perth?
The final inspection, conducted 1-2 days before settlement, is your last opportunity to ensure the property matches the contract terms.
Check that all fixtures and fittings mentioned in the contract are present and in the same condition as when you made your offer. This includes light fittings, ceiling fans, air conditioning units, garden sheds, and built-in appliances. Take photos if items appear damaged or are missing, as this provides evidence for potential settlement adjustments.
Verify that any repairs promised by the seller have been completed to a satisfactory standard. If the contract specified that certain maintenance work would be done, inspect these areas carefully and document any incomplete or substandard work.
Look for new damage that may have occurred since your initial inspection, such as broken windows, damaged walls, or malfunctioning appliances. While normal wear and tear is expected, significant new damage should be addressed before settlement.
Test essential systems including electrical outlets, plumbing fixtures, heating and cooling systems, and security features to ensure they're operational. While you can't expect everything to be perfect, major system failures discovered at final inspection may warrant negotiation or settlement delay.
Document any issues immediately and notify your settlement agent, who can coordinate with the seller's representative to resolve problems before the settlement meeting.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Successfully purchasing property in Perth requires careful planning, professional guidance, and attention to detail throughout the entire process.
By following these structured steps and avoiding common pitfalls, you can navigate the Perth property market confidently and secure your ideal home or investment property.