FACTOR IN COST OF A PURCHASE

(information provided by REIWA President 10-11 January 2015 - comments highlighted are mine)

When a buyer and a seller eventually agree to the terms of a property sale, it can be heartbreaking for the buyer if the buyer's application for a home loan is then declined.
(generally try to get them to speak with a broker before an offer is placed)

It can also be costly and frustrating for the seller.

One of the important services provided by a real estate agent is helping assess a potential home-buyer's ability to finance a property (good quality questions will generally sort this out)

REIWA agents, therefore, should be able to detect any signs that a sale may not proceed (depends on how on it the agent is)

If the problems are of a non-financial nature, the agent may be in a position to help the buyer but if it's about finance there is very little they can do to resurrect the sale (except if you can put them onto a brilliant broker - all depends on them and naturally the buyers ability to pay it back of course)

Following this, the seller is faced with re-listing the property.

Buyers, other than first home buyers should allow roughly for an extra 5 per cent on the purchase price of a property to cover all the transaction costs. (also first home buyers forget about the $2k they can claim once the property has settled from the REBA home buyers assistance)

With the median price of a home in Perth now about $540,000, the transaction  costs associated with the purchase of such a property would be about $25,000. (this price in the Western Suburbs of course would be related to an apartment)

The biggest in-going cost to the purchaser is State Government stamp duty of $20,000 on a median-priced home. (cannot understand why this is still here, well actually I can as the Government is not going to give up this huge cash cow)
Other transaction costs payable to the buyer include transfer of title fees, settlement agent's fee, various band a mortgage registration fees, adjustment of rates and taxes and insurance of course. (REBA as above you can recover some of these costs)
Not forgetting of course removal costs, gas, water and electricity connection fees and mortgage insurance you can be looking from an extra $5,000.
First home buyers grant is still available at a reduced rate of course.
First home buyers are exempt from the State Government stamp duty for homes purchased under the $430,000 (use to be $500,000)

Property investors can offset some of their transactions costs against tax liabilities associated with their investments (amazed this perk is still here)

While these costs are generally not allowed as income tax deductions, they can be taken into account for the calculation of capital gains tax.(you can rent out your property for 6 years if it's the only one you are saying is your principle home)

It is important that investors keep a record of all expenses related to their property purchase.(the amount of clients that ring me years and years later as they have not kept their information filed - sometimes I cannot help them as their info get's shredded)

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!