NOW is the perfect time to upgrade your home and move to an upmarket part of Perth.
According to Peard Real Estate Group chief executive Peter Peard, greater home loan competition combined with competitive house prices at the top end of the real estate market have made it an ideal time to refinance your property.
"Existing home owners who have a good track record of paying their mortgages and are seeking to refinance are now prime candidates for financial institutions," he said.
"Astute home owners wanting to refinance and upgrade their home can secure variable home loans for as little as 6.59 per cent with no entry, management or exit fees.
"More competitive finance options are occuring at a time when many homes in the $1 million plus bracket in Perth can now be purchased for below replacement cost.
"There is currently a large supply of homes for sale in the $1 million plus market, with few buyers, meaning that sellers are prepared to discount prices to secure a purchaser."
Mr Peard said this trend was underlined by sales figures for the upmarket northern suburb of Mullaloo.
"During the year ending the March 2011 quarter, the median price of a home in Mullaloo actually fell by 5.6 per cent, even though the annual average capital growth in this suburb has been over 11 per cent during the last quarter," he said.
"This trend has also occured in other parts of Perth. In the western suburbs, the median price of a home in Peppermint Grove fell by nearly 19 per cent, while in the southern suburbs, the median price of a home in Salter Point fell by nearly 13 per cent."
Mr Peard said newer homes which had been constructed in the last five years offered the best buying opportunities in upmarket suburbs, especially if there is a blowout in construction costs due to the resources boom.
"In addition, it is only a question of time before these prime suburbs return to their long-term average capital growth rates, which will see a major rebound in property values once confidence in the real estate market returns," he said.
"Currently, consumer sentiment is low. However, this makes it an ideal time to purchase a home and in particular to upgrade. Anyone who is considering upgrading their home should now shop around for the best finance deal. Once they have determined how much additional funds they can borrow to upgrade, they should then focus on higher priced suburbs where they can afford to purchase."
Mr Peard said a good tip when upgrading was to find a pocket in a selected area you want to purchase where there are a large number of homes for sale.
"Buyers will find that in these areas, sellers are more willing to discount prices due to the greater competition amongst sellers," he said.