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A new report from a bank shows where property buyers looking to upsize are looking to move to, as well as how they deal with the stress of the process.
Starting a job, planning a wedding, becoming a parent and upsizing a property. According to ING’s Upgraders Homeownership Report, all of these life tasks are just as stressful as each other.
In order to deal with the stress, 59 per cent of survey respondents plan to, or already have, a stop-gap measure between the selling of the old property and the purchasing of the new one.
Of this, 30 per cent are renting or planning to rent, 24 per cent have or will move in with friends or family, and 5 per cent have or will use the services of a hotel or motel.
Melanie Evans, ING’s head of retail banking, said these property buyers are typically dealing with both the purchase and the stress of a new home.
“Taking on a larger mortgage and having to consider the needs of others, such as a spouse or children, that may not have been in the equation during the last purchase are additional things that upgraders may have to contend with,” Ms Evans said.
“The fact that Aussie upgraders are making temporary living arrangements between selling and purchasing suggests their actions are very considered and done to help ease the financial stress of upgrading.”
For those looking to upgrade, location is not an issue, with one in five upgraders moving interstate over the last year, and over half at 51 per cent are considering to do so over the next year.
“A number of Aussies are looking further afield and purchasing well and truly outside of their previous or current locations,” Ms Evans said.
“They’re not just looking for a sea change, they also want to be near to a city centre and areas where there’s likely to be lots of activity.
“These towns are also likely to have employment opportunities and this may be attracting upgraders.”
Following an upgrade, property buyers are relying on flatmates to cut down on the stress of a mortgage, with 31 per cent of upgraders bringing on a flatmate, with 32 per cent of this figure being family members.
“Aussies are very determined to pay down their mortgage as quickly as possible,” Ms Evans said.
So, it’s perhaps not that surprising they are taking on flatmates to help accommodate the extra costs involved with upgrading.
“For some, the financial benefit of renting out a spare room is of more value than the loss of privacy when a flatmate moves in.”
The survey also showed that 82 per cent pay more than the required amount of their mortgage and 45 per cent expect to pay their mortgage off at least five years early.