How to upsize in today’s market Currently, much of the Australian property market is flying high, with property prices in cities such as Sydney and Melbourne increasing at an unprecedented rate. In Perth, however, the market is a little more forgiving for homebuyers and renters, with prices actually seeing a slight downturn. This is great news for those hoping to upsize in Perth. Indeed, the less demand a market experiences, the easier it is for upsizers to negotiate a price that suits them and their family. Taking the time to find a property that is right for you is vital, after all. Most upsizers are young families who have outgrown their home and want to live in a space that suits their needs. Finding that special ‘forever home’, then, is easier in markets that are a little less competitive. What steps should upsizers take to secure their dream home? Do your research Gather a few reliable valuations for your current home and think about how much you can afford to spend on a new place. Remember that upsizing comes with a number of extra costs including: – Higher maintenance fees – Higher utility bills and home insurance – Extra property taxes – Stamp duty – Moving costs – Transfer costs for utility providers – New furniture or décor for your new house There are also a number of logistical issues you will need to think through such as when you will move. If you sell your current house before you are able to move into a new one, you may need to find somewhere to rent in the meantime. Alternatively, if you buy a new house well before you manage to sell the old house, you could encounter issues with financing your new deposit. In this case, you will probably need a mortgage broker or lender to help you sort out a deposit bond or some form of short-term credit. Think about refinancing options Before you do anything, you will need to think about the logistics of refinancing your home loan if you have one. Most upsizers will have to start paying a larger mortgage, and you may want to increase the size of your loan. This will evidence that you will be able to repay your debts. Beware of deals that seem too good to be true Heavily discounted homes are often plagued with maintenance issues that will need addressing before you move in. This could end up costing you a considerable amount of money and make your move very stressful. Indeed, it may be worth investing in a more expensive property that is modern and serviceable. Consider extending your home Extending your home is an effective way of upsizing if you are wedded to your current home. Lenders tend to offer a number of helpful financial options for renovating your home that could come in useful such as interest-free loan periods. It is important to be wary of spending more on your renovations than the potential value added to your home, however. To avoid losing money in this way, make sure to obtain reliable valuations beforehand.
