Thinking of upsizing? Before you do, ask yourself why. Do you need more space and a larger block, or just a new home? Or is it simply location? It’s important to know why you want to upsize first, because if you like where you are and have everything you need, you might actually be better off staying. Here are a few more factors that can help you with the upsizing process.
Bear in mind the transitional cost.
You can really look to capitalize on this growing market that we’re seeing at the moment, and there is good value. And if you’re a renovator, it could be worth saving up to a million dollars or $800,000, and you can upsize something from $1.2 million, or $1.3 million and you would spend a lot more money on the $800,000 home or million dollar home to turn it into $1.2 million. So bear in mind that there is a transitional cost. You do have stamp duty, you do have agents’ fees, you do have marketing, and all those other costs involved.
Renovating versus buying a bigger home.
A lot of homes nowadays are comprised of two professionals and some even have young children. It’s hard to juggle between renovation, work and taking care of the kids and two working adults don’t have time to do all of that. Renovation not only takes time and effort, it also costs a lot of money. So really consider everything when planning to upsize. And I know all the builders in the area and they’re really good at doing quality work. Graya, Lilleybuild, and ARP are at the top of their game and if you're still convinced that you need to upsize and renovate, know that it’s easier to buy a home that’s already done and just get the keys handed to you without going through all of the renovation costs and everything in between and it can end up with a fast superior product and less hassle in your life.
Building costs and affordability.
Affordability sometimes doesn’t match up with people’s expectations. The lower end of the market is always highly sought after and the higher end of the market has fewer buyers, which is fine. But always consider the fact that you wouldn’t be able to replace the money and effort you would be spending on a low-cost home which was poorly renovated for a high-cost home that you can basically move in right away. Know that there is a huge difference between affordable homes and buying a home that’s already well made but would cost a little higher than what you would consider as affordable.
Popularity and price.
If you’re buying a big family home in a good area there is always going to be people looking to buy in that area as well, so you can bet that you can put a good price on that kind of home. If it’s in a good position, in a good street, good elevation - basically all the good things on your list, then you can easily find that property will be a sound investment. A good example of this is the Paddington and Bardon areas. At the moment, a lot of people are trying to get into the market. There are investors, people moving up from interstate, a lot of people are moving back from overseas and they seem to have a lot of money but the job opportunities aren’t here so it isn’t ideal. Make sure it’s a sound investment and still purchase a home that will answer to your needs. And even if you go for a smaller yard for a better job opportunity know that you can always change it later.
Sell or buy, what do you do first?
This really depends on each individual's needs. Some people don’t need to sell prior to buying or they might do what’s called bridging line and doing a loan. And if you’re thinking of a number that’s a bit inflated you might be in for a little bit of a shock. I had a lot of conversations where people say “Look, we get our valuation done for our home.” They may have asked their friends, it could be a family member, it could be another agent and they could be anyone in the world that thinks the house is worth a certain amount. But at the end of the day, you’re going to be dictated by the market and that’s something that’s really important to listen to. Because if the market dictates a certain number that’s what matters. They are the people buying the property, not your auntie or friends who think that your property is worth $2 million when it’s not.
So those are a few important points to remember. Upsizing is a pretty huge decision and you need to really look at all the points here. Don’t decide based on just wanting it, you need to look at what you need and what you can spend as well. If you need some tips, give me a buzz on 0405 000 219 or shoot me a message any time!
BEN WAKELY | 0405 000 219
Bardon Agent of the Year