Upgrading
or Downsizing
Real Estate

Upgrading or Downsizing Real Estate - Should You Upgrade or Downsize Your Home?

Upsizing or downsizing real estate can be a big decision. What can help you to make the right choice for you and your family? Start by getting the right advice.

Upgrading or Downsizing Real Estate : Finance Guide

Make The Right Move for You

Why is it so difficult to make a decision about upgrading your house or downsizing your home? Because your final decision will have a lasting impact on both your finances and your lifestyle.

At ZEP Finance, we understand the importance of making an informed choice. That’s why we’ve put together this complete guide on upgrading or downsizing real estate. In this guide, we’ll explore the benefits, considerations and financing options of both upgrading your house or downsizing your home.

Upgrade Real Estate Vs Downsizing Real Estate: Understanding Your Options

Are you facing a lifestyle change but not sure what to do about your current property? Is your family starting to grow and you’re finding yourself in need of a bigger property? Or maybe your needs have evolved and you’d now prefer something smaller and easier to maintain.

Whatever your situation, a trusted mortgage broker can help make the difference. Why? Because a mortgage broker can ensure you find the right finance options to make the process a whole lot smoother (both now and in the future).

In this guide, we’ll explain everything you need to get started with your downsize or upgrade real estate action plan. This includes:

How to finance either option.
If you are considering a property size change, but you’re unsure about the best way forward, this guide is for you.

If you’re looking to make this change urgently, then schedule a free appointment with one of our expert mortgage brokers and we’ll be more than happy to help you get your finance sorted.

Upgrading Your House: Expanding Your Horizons

Are you looking to accommodate a growing family or enhance your lifestyle? If so, then upgrading your house may be the right choice for you. Here are some key points to consider:

More Space for Your Family

As your family expands, you may need additional bedrooms, a larger living area or extra storage space. Upgrading your house allows you to meet these needs and create a comfortable living environment ideally suited for you and your family.

Enhanced Lifestyle Amenities

A bigger home often offers more amenities and room for activities. When you upgrade real estate to a bigger property, you can enjoy features like a spacious backyard, a dedicated outdoor entertaining area, a larger kitchen or even a pool.

Long-Term Financial Investment

Upgrading your house can be a strategic move for long-term financial growth. By purchasing a larger property in a more desirable location, you may benefit from increased potential in property value appreciation over time, which will increase equity.

Consider The Financial Implications

Before committing to an upgrade in real estate, it’s essential to assess your borrowing capacity and evaluate the associated costs, such as stamp duty, legal fees and ongoing costs. Our team can help you navigate upgrading your house.

Why Do People Upgrade Real Estate?

According to recent data from the Australian Bureau of Statistics (ABS), over 40% of Australians moved home in the 5 years leading up to 2020. Of those that moved, 12% confirmed that this was due to wanting a bigger or better home (a figure that jumped to 17% in the 35 to 44 years age bracket).

But what is the motivation behind this desire for a bigger home? There are often a range of factors involved in any decision to upgrade real estate. Some of these include:

1. Growing Family

One of the most common reasons to upgrade real estate is the need for more space due to a growing family. A 2-bedroom home may have been ideal while you were single, but that same space may start to feel very cramped once you include a couple of kids.

2. Improved Lifestyle

Many people aspire to improve their lifestyle by upgrading to a bigger home. This is because larger houses often come with better amenities, such as more bedrooms, larger living areas or more spacious backyards.

3. Increased Income

A first home purchase is often somewhat constrained by budget limitations. But as a person’s income grows and they develop more equity, their borrowing capacity may also increase. As a result, they may decide to upgrade to a bigger home.

4. Enhanced Convenience

A larger home often provides families with greater comfort and more convenience. With more space, families can enjoy greater privacy, better storage options and more room for recreational activities.

5. Investment Opportunities

Some homeowners may upgrade real estate as an investment opportunity. They may anticipate that the larger property will appreciate in value over time, potentially providing them with a better return on investment in the future.

6. Change in Lifestyle

Changes in lifestyle preferences can also motivate a person to upsize. For example, you might decide you want to entertain more frequently or take up a hobby that requires more space.

Downsizing Home: Streamlining Your Lifestyle

If you find yourself with unused space, rising maintenance costs or a desire for a simpler lifestyle, downsizing your home could be the solution. Here are some key considerations when downsizing a home:

Right-Sizing for Your Needs

Downsizing home allows you to align your living space with your current requirements. It can be a practical choice when you have multiple unused rooms or if you’re finding it a struggle to maintain a larger property.

Reduced Maintenance and Costs

A smaller home often means less time and money spent managing ongoing maintenance costs and utility bills. Downsizing can free up your resources, giving you the flexibility to pursue other goals and experiences.

Downsizing can unlock equity

Selling your current home and purchasing a smaller home can help you to unlock your equity. This can then be used to fund other priorities, such as retirement savings, travel or investment opportunities.

Consider all financial aspects

When downsizing, it’s crucial to evaluate the costs involved, including real estate commissions, stamp duty and other related moving fees. At ZEP Finance, we can help you assess all the financial costs.

What are the Most Common Reasons Why People Downsize Home?

While ABS data shows that downsizing real estate is still most common amongst older Australians, a growing number of younger homeowners are starting to see the attraction.

What is the appeal of downsizing your home? Some of the most common reasons include:

1. Financial Considerations

Downsizing real estate can be a strategic financial decision for anyone looking to reduce housing expenses (including mortgage repayments, rates, energy bills and maintenance).

2. Simplifying Your Lifestyle

Many people now see downsizing a home as an efficient way to simplify their lifestyle. A smaller property generally requires less cleaning and maintenance, which frees up homeowners to spend more time and money on other activities.

3. Environmental Awareness

Some people are now downsizing real estate as part of a broader commitment to sustainable living. Smaller homes generally have reduced energy consumption, water usage and carbon emissions, making it easier to support an eco-friendly lifestyle.

4. Location Preferences

The decision to downsize your home may be motivated by a desire to live in a specific location, perhaps closer to work, family or the CBD.

5. Life Changes

Major life transitions can sometimes be the motivation behind downsizing. This could include adult children leaving home, divorce, health issues or changes in employment. These significant changes may enhance the appeal of a smaller home.

Ongoing Support

Our commitment to you doesn’t end once you secure your loan. We offer ongoing support and assistance, ensuring that you remain on track with your financial goals and are satisfied with your mortgage arrangements.

Trust ZEP Finance to be your reliable partner as you embark on this significant financial journey. Contact us today to schedule a consultation with our knowledgeable team. Let us help you make the right move with confidence, whether it’s upgrading to a larger home or downsizing to a more manageable lifestyle. Your dream home awaits, and we’re here to turn it into a reality.

Home Loan Finance for Upgrading or Downsizing a Home

Whatever lifestyle choice you’re making – either upgrading or downsizing your home – it’s crucial that you start with the right finance advice from a trusted mortgage broker. What are the advantages of using a mortgage broker when you upsize or downsize your home?

With a mortgage broker, you have an experienced professional working on your behalf, giving you access to:

A wide network of lenders with a competitive range of loan products.
Expert guidance throughout the entire financing process.
A streamlined approach that can save you time, money and a lot of stress.
Customised finance solutions tailored to your needs.
An experienced negotiator with established industry contacts.
A support network that will continue even after your loan has settled.
Total peace of mind, knowing that your broker is working in your best interests.

ZEP Finance Can Help You Upsize or Downsize Your Home

At ZEP Finance, we offer expert financial guidance and tailored solutions for your specific needs. Whether you’re looking to upgrade or downsize your home, our dedicated mortgage brokers can assist you every step of the way. Here’s how our services can benefit you:

Get a comprehensive home loan health check.
Unleash your home equity.
Gain customised loan advice.
Access a diverse lender panel.
Enjoy a seamless application process.
Experience ongoing support, even post-settlement.
Total peace of mind, knowing that your broker is working in your best interests.

You can trust ZEP Finance to be your reliable partner as you embark on this significant financial journey.

Contact us today to schedule a consultation with our knowledgeable team. Whether it’s upgrading to a bigger house or downsizing your home to something more manageable, we can help you make the right move with confidence. Your dream home awaits, and we’re here to turn it into a reality.

Making The Right Move For You

At ZEP Finance, we understand that each individual’s situation is unique. Whether you’re considering upsizing or downsizing real estate, our team of mortgage experts is here to support you. We offer personalised advice and financial solutions tailored to your specific needs and goals.

Contact ZEP Finance today to discuss your options, so you can make an informed decision about upgrading or downsizing your home. Our knowledgeable team is ready to guide you through the process and help you secure the right mortgage for your new property.

Frequently Asked Questions About Upgrading or Downsizing Real Estate

Can I transfer my current home loan to the new property?

Some lenders offer portability options that allow you to transfer your existing loan to a new property, subject to approval and conditions. However, this will depend on the terms and conditions of your current lender.

How does downsizing real estate affect my eligibility for a new loan?

Downsizing your home may positively impact your loan eligibility by reducing your debt-to-income ratio and estimated expenses. This can then increase your borrowing capacity.

Are there penalties for paying off my existing mortgage early if I downsize?

Early repayment penalties may apply, but these will vary between lenders. A broker can help you assess whether the financial benefits of downsizing will outweigh any penalties you may be charged.

Can I use the equity from my current home as a deposit on a new property?

Yes, you can use the equity available in your current property as your deposit when upgrading or downsizing your home. To find out more about equity, chat with a broker.

Should I change my loan term when upgrading or downsizing real estate?

Changing your loan term can affect your monthly payments and the total amount of interest you’ll pay over time. You can ask a broker for help understanding the long-term financial impact of changing your loan term when downsizing your home.

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23:22 25 Mar 24

Zain is absolutely fantastic. He helped us with the refinance of our first home to help us buy our dream large acreage property nearly three years ago. Coming off our fixed loans, Zain is now helping us keep our new variable rates as low as possible. He’s been of tremendous help during the process each time. Highly recommended!

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23:19 20 Mar 24

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23:19 01 Mar 24

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05:17 29 Feb 24

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09:21 22 Feb 24

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06:36 22 Feb 24

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11:43 11 Jan 24

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19:40 18 Dec 23

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04:27 18 Dec 23

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03:19 12 Dec 23

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23:51 05 Dec 23

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04:08 14 Nov 23

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21:29 07 Nov 23

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23:26 31 Oct 23

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03:34 10 Oct 23

Zain and the team at ZEP Finance came recommended when we started looking at buying near Lennox and needed financing. Zain was able to assist us in getting the best solution for our mortgage. The team was incredibly attentive, responsive with any queries we had along the way and professional. They made the process seem as seamless as can be considering the current lending context. A big thank you Zain, Trudy and Kelly for your expertise and support, we will certainly recommend your services.

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11:14 03 Oct 23

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07:17 11 Sep 23

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04:30 10 May 23

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10:40 19 Apr 23

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10:24 19 Apr 23

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01:23 28 Jan 23

Amazing⁫ experience for first home purchaseZEP Finance we’re excellent in making our fist home buying experience simple. Our broker, Joel, provided an awesome experience when purchasing our very first home and wer were able to purchase the home of our dreams. Throughout the whole process, Joel always communicated with us clearly and answered any questions we had, making sure we understood. Thank you to Joel and ZEP finance for providing us with a great experience and we will be sure to return when we need a broker in the future.

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22:20 27 Dec 22

The team at ZEP Finance were very professional throughout the whole loan process and provided us with several options that suited our circumstances. Not living local was not an issue for them and the communication provided from the ZEP team was amazing. If you are looking for a service which is tailored to your specific needs we highly recommend reaching out to Zain and his team. Thanks for helping us achieve another milestone in our lives.

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05:17 16 Dec 22

So⁫ grateful for Zep Finance.There are few words that can explain our gratitute to Zain and Joel.The brokerage service was excellent from beginning to end in assisting us to secure our very first home.Zain and Joel made us feel valued and informed each and every step of the way on our journey to owning our own home.We can't thank them enough for their exceptional, meticulous, professional and efficent assistance and support.If you are looking for a broker, we can absolutely recommend Zep Finance and will continue to use their services in the future!From the Myburghs.

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23:37 20 Oct 22

Third⁫ time - Still Amazing ServiceThis was our third time working with ZEP Finance. The whole team supported us through a very difficult process negotiating with our previous lender following the February/March floods. We would have been lost without their support.They then switched gears and sprung into action to get us locked and loaded to buy a new, flood free home.Joel helped us obtain pre-approval with our preferred lender and the whole process from exploring options to pre approval to settlement was seamless and stress free.Zain has built a quality and caring team, whose attention to detail and customer service is hands down second to none.I have always, and will continue to recommend ZEP to anyone looking into finance options.

The Image Collective

05:22 04 Oct 22

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00:18 02 Aug 22

Second to noneOver many years and many transactions, Zain Peart and his team (Kylie, thank you) have always been great, but this time they went above and beyond. Our situation is complex, the investment property transaction we just executed was complex, and what was even more complex was the timing of the transaction (floods, COVID-19, interest rate increases, maternity leave, personal matters etc). ZEP provided much needed stability in these uncertain times. There is nothing that office cannot do, and it seems the more complex the scenario the more they stand out. I cannot recommend ZEP highly enough, and do to my family, friends and clients 100% of the time.

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10:02 17 May 22

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00:55 15 Jan 22

Buying and selling property can be stressful so having someone assist us with our financing towards the selling and buying of a property was very important to us. Zain at ZEP Finance came highly recommended. Both Zain and his team did an incredible, efficient and professional job from start to finish. Zain's knowledge and experience is exceptional which instilled our confidence and trust. The team's communication was outstanding and their timely and prompt attention to detail provided comfort and peace of mind throughout the process. This meant we could focus on other necessities associated with moving house as well as saving us a heap of time. We would highly recommend Zain and ZEP Finance to anyone requiring a mortgage broker.

Upgrading
or Downsizing
Real Estate