Upgrading to a new home can be a costly task but today’s savvy homebuyers have found some clever ways to save money without having to stinge out on socialising.
This is according to ING’s recent Upgraders Homeownership Survey Report, which found that homebuyers looking to upgrade would take in a flatmate, move back in with their parents or move to an entirely different state rather than sacrifice a candle lit dinner and a bottle of wine.
Like starting a new job or planning a wedding, moving house is a stressful job mentally, physically and financially - this survey revealed that 59% of respondents had or planned to use a stop-gap when upgrading to a new home.
“Probably the biggest difference between purchasing a first home and upgrading into the next one is that, in most instances you’re not just buying a home, you’re selling one too. Managing your finances between those events weighs on the mind of Australians,” ING’s head of retail banking, Melanie Evans said.
“The fact that Aussie upgraders are making temporary living arrangements between selling and purchasing suggest their actions are very considered and done to help ease the financial stress of upgrading.”
Almost a third of upgraders have or planned to rent in between selling and buying, while 24% said they’d move in with friends or family.
Flatmate or dinner date?
ING’s research shows that over a third of people who upgraded their home last year took in a flatmate post move, and 32% of that portion were families.
According to the survey many received rent to ease the financial stress of their mortgage - with 82% of mortgage holders paying more than required each year and almost half expected to pay off their mortgage at least five years early.
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“Aussie home owners can find the burden of a new mortgage tough when they have upgraded to another home. Taking in a renter may be a great, cost-effective option if you have a spare room because it eases the pressure of paying back a home loan,” Mozo Director, Kirsty Lamount said.
“It may not be forever, but having a stable flow of rent is a clever way to help you pay back your mortgage sooner and take the financial guilt off the small things in life, like going out for a nice dinner with your partner.”
Only a quarter of respondents in ING’s report indicated that they were willing to sacrifice on socialising activities, like date night, when saving to upgrade to a new home.
Buyers also opted for moving interstate to save on house prices, with 1 in 5 moving to areas like Melbourne, Byron Bay, Central Coast and Brisbane and over half considering relocation next year.
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If you’re looking to upgrade your home in 2019 then a great way to start comparing mortgage rates is by looking at the table below or checking out the recently released 2019 Mozo Expert Choice Home Loan Awards.