In case you missed it, there was an article that looked at this specific opportunity in The Age on Saturday, September 14th. Written by Elizabeth Redman, the article headed “Upgraders told to move fast as prices recover” pointed out that the window for Melbourne homeowners wanting to upgrade to a better property at a discounted price is closing now that the market has started to turn.

The article pointed out that:

“Some savvy owners took advantage of the recent downturn to trade up, as the discount available on buying higher-priced properties was often larger than any loss made on selling an entry level home.

But with two interest rate cuts in recent months and a change to bank lending rules allowing purchasers to borrow more, buyers are bidding up prices at auctions and the city’s median edged up 0.3 per cent in the June quarter on Domain figures.”

Now that the Melbourne property is showing signs of price growth again, the message for anyone planning on upgrading is clear. The longer you wait, the bigger the price gap will be between the home you’re in now and the home you want to move to, as every time prices rise by 10%, the price gap between the two will also rise by 10%.

For example, if you own a home worth $600,000 and want to move to a home worth $900,000, that’s a $300,000 price gap. But a 10% rise in the market will increase the price of your property to $660,000, but the price of your next home to $990,000, making the gap $330,000.

Remember, if you are planning on upgrading, and want some experienced advice on how to make that move in the best financial shape, don’t hesitate to call us at Barry Plant Thomastown on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown