On a space mission

Potential upsizers need to consider the cost and logistics – and even whether an extension would be a better alternative

- TOM WATSON

Much has been made of the trend of downsizing in recent years, but plenty of Australians are moving in the other direction: upsizing. In a recent survey conducted by mortgage broker Resolve Finance, 12% of homeowners reported they were planning to move into a larger home in the next year, compared with 7% who planned to downsize. The largest cohort of upsizers, the survey found, were aged 35 and under.

It’s something that Sanjeev Kumar, the director of LJ Hooker Schofields in Riverstone, Sydney, sees firsthand every week. In fact, about 40% of his clients are upsizing.

“A lot of our upsizers are going from units and townhouses in somewhere like Riverstone and moving to a bigger house,” says Kumar.

“Sometimes it’s a growing family, changing areas for school catchments, or people who want a house with a bit more land and, for example, a pool. But generally it’s just people needing a bit more space – that’s why they make the transition.”

Upsizing is not necessarily a simple move, though, and nor is it cheap. That’s why for a costs of moving into a rental home and a double move.”

Beyond the mortgage repayments and the cost of renting a home during the transition, there are a number of other potential expenses along the way.

“The key costs associated are probably stamp duty, agency fees and lawyer fees and then the cost of packing things up and removalists in making that change,” says Kumar.

Stamp duty alone can be sizeable. For example, upsizing to a home valued at $1 million would incur stamp duty and transfer fees of $34,484 in Queensland, $58,011 in South Australia and $57,566 in Victoria.

Timing can be a challenge