Flat market offers upgrader opportunities

Flat market offers upgrader opportunities

14 July 2011 by Staff Reporter 0 comments

Staff Reporter

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.

Staff Reporter

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.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?