Upgrading your home in a rising market (the cost of delay)
August 25, 2014
The humble "upgrader" is the biggest segment of the Australian property buying market.
So much of our media attention is focused on first home buyers, investors, renovators and even downgraders. Little attention seems to be paid to those people that aspire to simply owning a better home. A better Australian dream.
Anyone who is thinking of upgrading to a more expensive property should take a good look at the following comparison. A 10% market increase will cost you a large amount of money if you delay.
Our first table involves selling a $450,000 home and buying a $600,000 home in today's market.
The second table below demonstrates the cost of upgrading if the market increases by just 10%.
The total cost of delaying if property market prices increase by 10% is $18,600 in this example.
Upgrading can be tricky when it comes to finance. There are a range of options that need to be considered and calculated. Some will "sell first and buy later", others will try to keep both properties and some will go for the bridging loan option.
As always, please don't hesitate to give us a call if you would like your numbers crunched.
Tags: upgrading the cost of delay