Great Australian dream comes at a cost
EXCLUSIVE: The great Australian dream now comes with a plus one.
Home buyers keen for more space and bigger backyards are now looking at getting a tenant to reduce financial stress.
In the quest to upgrade their homes, cost-saving measures also include bunkering down with their parents.
ING's Upgraders Homeownership Report quizzed more than 500 Australians who have either taken out a new mortgage to upgrade in the last 12 months or own a home and plan to upgrade in the next year.
It found 59 per cent of all respondents have a "stopgap" between selling their old home and moving into a new one.
About 31 per cent of recent upgraders have taken in a flatmate to afford their upgrade, including 32 per cent of families.
Mother-of-one Carla Zipper, 36, recently sold a one-bedroom investment property in Melbourne, then moved to Sydney.
Her and her husband are now looking to buy.
"We've been watching the market and we're confident it's coming down so we're waiting for the right time to buy," Ms Zipper said.
"We're looking to buy a three-bedroom property with a budget of around $1.6 to $2 million, we need more space as we are a growing family."
The study showed about 30 per cent of respondents said they did or planned to rent in between moves, 24 per cent have or planned to move in with family or friends and 8 per cent have or planned to stay in a hotel or motel.
ING's head of retail banking Melanie Evans said many Australians wanted to live the great Australian dream under a bigger roof with a bigger backyard.
"In the large majority of cases Australians are looking to upgrade because they need extra space and their family structure has changed and they want a backyard," she said.
"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."
House prices have continued to fall in many capital cities including Sydney and Melbourne in the past 12 months.
Home lending has also fallen by more than 20 per cent in the last year and has seen the biggest fall in the past decade.
Social analyst David Chalke said many people upgrading are likely to be "in the middle-family category."
"They're likely to be in the 35 to 45 category and need more room," he said.
"Certainly trends over the last couple of decades are definitely trends towards much larger homes because people want the bigger home with a kitchen, diner, three or four bedrooms, ensuite and family bathroom."