Upgrading
Ready for more room? Plan the sale and the build together.
Moving from your current home into a new build takes two things to line up: selling and building. Here's how people usually do it, and what to plan for.
Sell first or build first?
There's no single right answer. It depends on your equity, your lender and how much certainty you want.
Sell first
Good
- You know your exact budget
- No two loans at once
- Easier to get finance
Watch
- You may need to rent during the build
- You could move twice
Build first, sell later
Good
- Stay put until the new home is ready
- Move only once
Watch
- Usually needs bridging finance or enough equity
- Two loans for a while
- Bridging loans have time limits
Using your equity
Equity is what your home is worth minus what you still owe on it. Lenders may let you use it towards the land deposit and the build. If you build before you sell, a bridging loan can cover the gap until your current home sells; lenders set how long the bridging period can run. A licensed broker can work out what's possible for you, and I'll introduce you to one.
Costs to plan for
Selling
- Agent commission and marketing
- Conveyancing
- Any work to get the home ready for sale
Buying and building
- Stamp duty on the land. First home buyer concessions don't apply when you upgrade, but with separate land and build contracts duty is normally charged on the land price only
- Bridging or construction loan interest
- Rent, if you sell first
- Moving, and extras after handover like landscaping, fencing and window furnishings
Design for your next stage
Upgrading is the chance to plan around how your family lives now and over the next ten years. A custom plan costs the same as a standard Homegroup design of the same size and inclusions.
Working from home
A proper study or home office away from the living areas.
Parents or guests
A downstairs bedroom with its own bathroom for parents, guests or older children.
Room to spread out
A second living area or theatre, so everyone has their own space.
Everyday storage
A butler's pantry, a bigger laundry and a larger garage.
A typical order of events
- Budget and financeWork out your equity and borrowing with a licensed broker.
- Plan the homeChoose a design or plan a custom one, and get your quote. Plan and quote are free.
- Secure the landBuy a lot, or choose a house and land package. The land settles first.
- Contract and buildSign the building contract. The build runs in stages from the slab to handover.
- Sell and moveSell before or during the build, depending on the option you chose.
General information only, not financial advice. Your lender and broker confirm what's possible for your situation.