18 July, 2011

Softer prices can save upgraders many thousands of dollars on next home

Leading real estate firm Raine & Horne is urging upgraders to take advantage of softer real estate prices to save themselves thousands of dollars on the cost of a new home.

Raine & Horne CEO Angus Raine said that if you believed your local real estate market had softened in recent months, now could be the perfect time to consider a larger home.

“Indeed upgrading to a bigger home in the current market could save owner-occupiers many thousands of dollars," Mr Raine said.

Mr Raine cites the example of Sydney, where the median price for a detached house in September 2010 was $595,000, while apartments were closer to $459,000.

“In other words, last September you would have needed around $136,000 to upgrade from a two bedroom apartment to a three bedroom house.

“Let’s assume you upgrade now and the house is worth slightly less at $565,250, while the apartment is valued at $436,000.

“This represents a changeover of $129,220 and a saving of almost $7,000 and a slightly smaller stamp duty impost, compared with September 2010. This is real money in the pockets of homeowners, especially with living costs on the rise,” Mr Raine said.

However, he warned homeowners that the savings would not last and that already buyers were starting to rouse, which could start to stir real estate prices.

According to the Australian Bureau of Statistics* owner occupier loan approvals jumped 4.4% in the month of May 2011, with South Australia (8.2%), Northern Territory (4.5%) and Western Australia (3.6%) leading the way.

“While I wouldn’t discount an interest rate rise before Christmas 2011, it is fair to expect the values of quality, well-located homes to perk up as we move closer to the traditional spring selling season,” Mr Raine said.

“If you’re prepared to price your house sensibly to meet current buyer demand, there is a small window of opportunity now to upgrade to a new home and save yourself some serious cash in the process.”

* 5609.0 - Housing Finance, Australia, May 2011

For all your property needs contact Raine & Horne on (02) 9258 5400.

Raine & Horne is an iconic Australian property firm, with more than 360 offices worldwide. Also an established Superbrand along with Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Rural and Raine & Horne Financial.

-ENDS-

For further media information contact:

Angus Raine, CEO Raine & Horne, 02 9258 5400 or 0409 920 697.

Anna Truman, National Marketing & Communications Co-ordinator, 02 9258 5448.