‘Like starting again’: Melbourne upsizers priced out of the market

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The cost of buying a house is nearly double that of a unit, making it much harder than a generation ago to move on from a first home.

The cost of upsizing from a unit to a house has left Melbourne buyers feeling like they are starting from scratch, and the widening price gap between the two is making it harder to find the space to raise a family.

It’s left buyers turning to options more common among first home buyers, such as relying on help from family or taking out lenders mortgage insurance. Powell said buyers needed “stepping stones” to help them progress up the property ladder, including “more medium density housing” like townhouses and boutique apartments in Melbourne’s middle suburbs.“If we had more terraced homes and higher density detached homes... actually that median house price will probably be lower than what it is today,” she said.

“I’m seeing a lot of people getting inheritance paid forward, or parents just getting involved in the whole thing. If has already exceeded their borrowing capacity, it is the most obvious option,” Bakos said. “Realistically, in Melbourne, it was going to be either renting somewhere or buying a bigger apartment,” the AI and data consultant said.

“That gap between is quite big and we discovered that when we were tossing up options, like, if we sell, what can we actually buy in Melbourne? And the answer was not a lot.”GSC Finance Solutions managing broker Matt Turner said upsizing buyers were often forced to choose between the size and location of a property.

 

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