Real estate agents may soon see an increase in upgrader enquiries, with flat property prices offering buyers some real savings, according to Raine & Horne.
“If you believe your local real estate market has softened in recent months, then now could be the perfect time to consider a larger home,” Raine & Horne chief executive Angus Raine told prospective home buyers.
Mr Raine used the example of Sydney, where the median price for a detached house in September 2010 was $595,000, while apartments were $459,000. At this time consumers 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.”
According to the Australian Bureau of Statistics (ABS), owner occupier loan approvals jumped 4.4 per cent in the month of May 2011.