Buying your first home was a huge milestone. Now you’re ready for the next step, but upgrading comes with its own set of questions. Where do you start? Should you sell first? Can you use equity as a deposit? And how do you juggle two properties without losing your mind?
If you’re asking those questions, you’re not alone. Many next-home buyers feel overwhelmed by the complexity of the upgrade process. The good news? You’ve done this before, and with the right preparation, you can approach the process more informed.
Know Your “Why” Before You Buy
Before you scroll realestate.com.au for hours, stop and think: what’s changed since your first home?
Maybe your family’s grown, you want a bigger backyard, or you need to be closer to work or schools. Take a moment to write down what matters most this time around, your non-negotiables vs nice-to-haves.
This clarity will save you time, stress, and second-guessing later.
Check the Market Value of Your Current Home
Your first home may have equity depending on its valuation and your loan balance. Some borrowers explore how this is assessed by lenders when considering a future purchase.
Ask a local agent for a free appraisal or use online estimators to get a ballpark figure. Your broker can then help calculate how lenders may assess available equity as part of a future lending application.
Search term to remember: "use equity for second home".
Decide: Sell First or Buy First?
It’s the classic dilemma. Selling first gives you a clear budget, but might mean renting in between homes. Buying first can create timing challenges, and some buyers explore bridging finance depending on their circumstances.
There’s no one-size-fits-all answer, it depends on your financial position and timing considerations. That’s why it’s crucial to talk with your broker early.
Hot tip: search "buy new house before selling old" for insights into both approaches.
Budget for the Transition
Upgrading isn’t just about the new house, it’s the moving costs, stamp duty (again!), styling your current place for sale, and maybe paying two mortgages for a short time.
List out:
- Agent fees
- Legal/conveyancing costs
- Removalist/storage
- Bridging loan interest (if applicable)
- Utility connection fees
Having visibility over potential costs can help reduce the risk of unexpected expenses.
Get Pre-Approval (Yes, Even as an Upgrader)
Lenders still assess your borrowing capacity based on your income, expenses, and existing mortgage. A conditional pre-approval helps define your real budget and can help clarify your budget when you’re considering properties.
Final Tip: Timing Is Everything
Coordinating settlement dates can be tricky. Ideally, you want to sell and buy in the same window, but have a backup plan (short-term rental, storage, etc.) just in case.
Your Next Chapter Starts Here
Upgrading to your next home is a big move, but it doesn’t have to be a stressful one. With the right strategy, yyour first home may play a role in your future housing decisions.
Want to make your next move with confidence? Download the free First Home Buyer e-book, yes, it’s for next-home buyers too. You’ll get checklists, calculators, equity tips, and a full chapter on how to understand the key steps involved in coordinating buying and selling. It’s your roadmap to a smooth, stress-free upgrade.
