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Savvy homeowners get creative to overcome the stresses of upgrading

Published on 20/03/2019

Media Release

Savvy homeowners get creative to overcome the stresses of upgrading

  • More than half of all recent and future home upgraders (59%) have or plan to use a stop gap between selling and purchasing homes
  • 31% of recent upgraders have taken in a flat-mate to afford their upgrade, 32% of these are families.
  • 51% of future upgraders plan to move interstate with Melbourne, Byron Bay, Central Coast and Brisbane dubbed the hot spots

Wednesday 20 March, 2019: A new report by ING reveals Aussie homeowners are finding savvy ways to overcome the stresses of upgrading from one home to another.

According to ING’s Upgraders Homeownership Survey Report, upgrading into a new home is as stressful as starting a new job, planning a wedding or becoming a new parent.

To combat the challenge more than half (59%) of all survey respondents say they have or plan to use a stop-gap between selling their old home and buying their new one.

This is made up of almost a third (30%) who have or plan to rent, while nearly a quarter (24%) say they have or plan to move in with friends and family and 5% have or intend to use a hotel or motel.

ING’s head of retail banking, Melanie Evans says:

“Probably the biggest difference between purchasing a first home and upgrading into the next one is that, in most instances you’re not just buying a home, you’re selling one too. Managing your finances between those events weighs on the mind of Australians.

“Taking on a larger mortgage and having to consider the needs of others such as a spouse or children that may not have been in the equation during the last purchase are additional things that upgraders may have to contend with.

“The fact that Aussie upgraders are making temporary living arrangements between selling and purchasing suggests their actions are very considered and done to help ease the financial stress of upgrading.”

Taking in flat-mates to accommodate the costs of upgrading

Post upgrade, homebuyers are bringing in flat-mates to help ease the financial stress of a larger mortgage. According to the research, almost a third (31%) of people that upgraded last year took on a flatmate. Of this, 32% were families.

“Aussies are very determined to pay down their mortgage as quickly as possible. So it’s perhaps not that surprising they are taking on flat-mates to help accommodate the extra costs involved with upgrading. For some, the financial benefit of renting out a spare room is of more value than the loss of privacy when a flat-mate moves in.”

The ING survey shows 82% of mortgage holders are paying down more than what’s required most years and 45% expect to pay off their mortgage at least five years early.

Aussies prepared to move interstate to upgrade

The research indicates relocating states is a trend that could be on the rise with one-in-five upgraders having moved interstate over the past year and more than half (51%) of future upgraders considering to do so within the next year.

According to the research Melbourne, Byron Bay, Central Coast and Brisbane are dubbed hot upgrading spots for both current and future interstate upgraders.

“A number of Aussies are looking further afield and purchasing well and truly outside of their previous or current locations. But they’re not just looking for a sea change, they also want to be near to a city centre and areas where there’s likely to be lots of activity. These towns are also likely to have employment opportunities and this may be attracting upgraders.”

Date nights and socialising are not things Aussies are prepared to sacrifice for their next set of keys

Socialising and date nights are not something that most upgraders are willing to give up, with just one in four willing to cut back on these activities.

“What this research suggests is that Aussie upgraders are thinking carefully about their next purchase and not rushing their decisions. They’re taking on inventive measures to upgrade and this is enabling them continue doing the things that matter to them – like date nights and spending time with friends.”




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Notes to editors:

  • This survey was conducted by GalKal in March 2019 .The sample comprises of 510 Australian upgraders aged 18 plus and distributed throughout Australia.
  • For the purpose of the study upgraders are defined as:
  • Current upgraders: People who have owned at least one home and have taken out a mortgage to upgrade to a new home within the last 12 months
  • Future upgraders: People who own at least one home and intend to take out a mortgage on a new upgraded property in the next 12 months

About ING

ING changed the way Australians bank 20 years ago by launching the country’s first high interest, fee free online savings account. Since then, we’ve brought continued value to home loans, transactional banking, superannuation and insurance.

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