In this episode of The Australian Property Podcast, Australia’s #1 mortgage broker Chris Bates and top buyers agent Amy Lunardi break down the tricky transition of upgrading or downgrading your property.
Topics covered in the Upsizing & Downsizing podcast:
Upsizing:
- Using as a strategy – buying entry level now and upsizing in the future – benefits/risks.
- Buy or sell first?
- Buy first
- Don’t know what you’ll sell for = risk
- How does bridging finance work?
- Settlement periods matter: minimise bridging costs, pressure to buy, short term accommodation
- Flexibility of changing settlements (not guaranteed)
- Licence agreements/rent backs
Downsizing:
- Cheaper? Not necessarily!
- I often see downsizers still having lots of ‘requirements’
- Single levels, garages, spacious living areas, minimal work required. Consider local demographics
- Consult with ATO or financial planner regarding downsizer super contribution options, non-concessional contribution which doesn’t count towards the contribution cap
- How do banks consider equity rich cash poor/no income?
- Short term accommodation can be stressful / moving twice
