Being mortgage brokers puts us in a unique position. Most of the home loans we help provide are in the Kwinana, Rockingham, Baldivis and areas and this gives us direct knowledge of the local market. Unlike real estate agents who tend to concentrate on one social strata or demographic, we see an accurate cross-section of the market. Most studies that we read are spot on with what we already know.
While a lot of media attention is focused on first-home buyers, renovators, downsizers and investors, nobody seems to be paying attention to the people who are responsible for most of the movement in the real estate market — the upgraders.
The people who make up the largest segment of the Australian real estate market are everyday people who simply aspire to own a better home — a better Australian dream. People who work hard, save their money and try to move into a nicer home every once in a while are the most common buyers in today’s real estate market.
Why You Should Upgrade Now
If you were to upgrade from a $450,000 home to a $600,000 home, it would cost you $9,000 in agent fees at 2% and $2,000 in marketing fees to sell your current home. It would cost $2,000 for conveyancing and legals and $22,490 in transfer stamp duty. Of course, it would also cost you the $150,000 difference in the prices of the two houses. That would make the total cost of upgrading now $185,490.
Let’s say you wait until the prices of both houses went up 10%. Your marketing fees would still be $2,000, but your agent fees would be $9,900 for selling your house, now priced at $495,000. The house that is $600,000 now will cost $660,000 then. Your conveyancing and legals will still be $2,000 but your stamp duty will be $25,190. Considering that the difference in house prices is now $165,000, your total cost of upgrading after a 10% rise will be $204,090.
In other words, it will cost you $18,600 to wait until prices have increased by 10%. Do you want to risk waiting that long?
Call 0408 912 244 to learn more.