Perth’s current property market is favouring those looking to upsize. The reasons for upsizing are many and varied. Often families upsize for more space because they need another bedroom for the new addition, the kids are growing up and need a study or second living area. Some buyers will upsize to a more expensive suburb, better quality property or to move inside the boundary of a different public school. For others it’s about upgrading for lifestyle reasons. They may want a larger block of land, a house with a pool, a reduction in commute time or walking distance to a café strip.
“The changeover gap has closed considerably, and you can certainly get a lot for your money on the upgrade amount of $250,000 to $300,000”, Naked Real Estate’s Brendan Leahy said. Previously you would have spent much more to get that extra space or improvement.
The current historically low interest rate environment is further incentive to upgrade. With low rates and talk of a possible rate cut in the future, buyers can feel more confident in taking on a new mortgage.
Perth is currently a buyers’ market. With high stock levels and motivated sellers, buyers can pick up the property of their dreams without over stretching the budget. Recent buyers have been surprised at the quality of property they can pick up, particularly if they have been looking for some time.
As is usually the case, the Sydney market is opposite to Perth. There it is a classic sellers’ market. High property prices mean those people wanting to downgrade will be better off than those trying to upsize.
“As I’ve said before, this is the perfect market to upgrade to a bigger home or more land as the gap, percentage wise, is as small as it gets. When the market shifts again it will be too late and the gap to trade up will get wider,” Brendan Leahy said.
But as always, real estate must be viewed as a long-term investment. Do your research, take advantage of the low interest rates and don’t worry about trying to pick the bottom of the market. History has shown that people who upsize in a flat market and hold the property for a number of years do very well.
To get an idea of your total buying or selling costs, check out our buying and selling calculator where you can work out the changeover costs associated with selling and buying a home. And while you are there, try our mortgage calculators to get an idea of mortgage repayments and borrowing power.
For more advice on how to take advantage of the buyers’ market, where and how to buy, give the team at Naked Real Estate a call on 6254 6333 or if you are all set to sell, request an appraisal here.