When someone says that they’re upsizing their home, most of us will automatically think they’re moving to a larger dwelling; but this is not always the case.
The actual definition of upsize is ‘to increase the size, extent, or complexity of something’, so when related to Real Estate terms this could definitely mean a larger home, but it could also denote a move to a more expensive or desirable suburb, or to a home with more superior fixtures, features or amenities.
In a market like the one we have seen in the past few years, with exponential growth and accelerated prices, upsizing has not been an affordable option for the majority of home owners. However, with many financial analysts and reports predicting a continued stabilisation of the market, this could be the ideal time to make upsizing a reality.
Buyers looking to trade up may find their desired property has decreased in value more than their current home. This is a great position to be in. Alternatively, their budget may now stretch to afford a better property than was previously possible.
Normally the choice to upsize means a greater financial investment, and an increase in monthly expenses. However, if you get the timing right, you can sell your existing home first, obtain a great result and then be in the enviable position of knowing how much money you can allocate to your next purchase. In a rising market, the option of selling first can be nerve wracking, as you don’t want to be selling in a lower market and then buying back in at a heightened price, however in a stable market, the pressure to buy back in immediately is decreased, allowing you a longer period of time to find the perfect upsizer.
Another benefit of upsizing in a stable market, is that when prices do start to increase again, you’ll be in a better position as you’ve improved your place on the property ladder, potentially with minimal cost. Put simply, you’ll have an asset that’s worth more.
So, what are the common ways that people upsize, and what might be right for you?
It’s all about location: For some, upsizing is about moving to a different location; closer to the CBD, somewhere beachside or potentially to what’s seen as a more affluent suburb. There are a variety of reasons for this; you may be an empty nester taking advantage of the freedom to live where you choose, you may need to be closer to schools or activities for your children, or maybe you’re in the financial position to move your family to the area you’ve always aspired to. The size and quality of the home may be similar to what you’re coming from, but for you it’s the postcode and place on the map that holds the appeal.
When size matters: Certainly, the most common image people conjure up when you say you’re upsizing, is a picture of a larger house or more land; or if you’re lucky, both. The desire or need for a larger house will vary between parties, but ultimately, it’s because you need more space; you may have a growing family, you’ve decided you want to start a family, you have elderly parents who need to move in with you or you’re sick of feeling enclosed by a small yard and want to enjoy more land and open green spaces. You may upgrade the size of your space in the same location, or you might also change your postcode along with your square meterage.
You’d like one with all the trimmings: You’re happy with your suburb, and you have ample space in your current home, but still you want more; and there’s nothing wrong with that. It may be that your home is in fairly original condition, and you’d prefer to buy your upsizer rather than renovate yourself. You might want a home that has a swimming pool or other leisure items, or maybe you’ve been living in a period style home and you’d prefer a light filled contemporary residence with all the modern touches. These are all very common and valid reasons for making a move.
Despite the lenders imposing stricter guidelines in the past 12 months, mortgage rates have remained relatively low and are predicted to remain this way for the time being, so it certainly looks like this could be just the time upsizers have been waiting for.
If this rings true for you, now’s the time to start doing your research and taking steps towards a positive future.