What does upgrading mean?

Upgrading means selling your current home and purchasing a property that is a little further up the property ladder.

In many cases, homebuyers will upgrade to help accommodate their growing families, and the current apartment or townhouse just won’t do the job.

However, there is a raft of other reasons for upgrading to a bigger home that reflect the different ways we live and work today. For instance, more Australians are starting businesses from home, and this requires more space and possibly a separate entrance. And let’s not forget that more employees are taking advantage of improving internet coverage and speeds to work from home.

Unfortunately, 1 in 3 marriages break down in Australia, and divorce or separation often leads to new relationships. In many cases, the new relationship creates an extended ‘blended family’ situation requiring a larger space to house the bigger brood and the extra possessions.

The rise and rise of the multi-generational house is also driver some homeowners to upgrade. With our ageing population, it is becoming more widespread for grandparents to move into their adult children’s homes, where they might also share the space with their grandchildren. This arrangement can be beneficial for all parties, as some parents are working considerably longer hours and are relying on their retired parents for support at home.

Whatever your reasons are for upgrading, it’s important to consider the financial issues. You have probably built a sizeable amount of home equity to help you to afford the upgrade. However, it's best to be certain you can finance the move, and this is where speaking with a financial specialist such as Our Broker for ways to finance your upgrade will prove a worthwhile exercise. You can contact Our Broker on 1800 913 677.

Our professional financial specialists at Our Broker can explain your borrowing options, leaving you free to focus on selling your current home and choosing your next property with the help of your local Raine & Horne agent.