Whether you’re taking out your first home loan or are a seasoned property buyer, it can be exhilarating to suddenly find yourself flush with so much capital. While you hopefully will already have a particular property in mind for your purchase, it might be a good time to start thinking about whether you are really spending as much as you need to – and we’re not talking about haggling with the vendor.
Using Australian Bureau of Statistics data, a recent CoreLogic RP Data study showed that 30 per cent of owner-occupiers had a bedroom that they didn’t actually use frequently, while an even greater 39 per cent had two superfluous bedrooms. In fact, there was a greater percentage of people with three extra bedrooms than those who had exactly the right amount.
Considering the huge amount that an extra bedroom can tack onto the price tag of a property, clearly there are plenty of people who might be spending more than they actually need, particularly in light of the fact that CoreLogic has reported the median value of a Sydney home is edging closer and closer to $1,000,000. The question is, why do so many of us spend more than we need in a high-value market?
A new real estate money maker
A major factor could be the recent rise of services such as AirBnB, which allows people to rent out their rooms to holiday-makers simply by using an app. Rather than relying on hotels, motels and other traditional commercial accommodation, many travellers are choosing instead to take advantage of these extra bedrooms that the majority of Australians seem to have. And it’s proving to be a popular choice – according to an analysis by the Sydney Morning Herald, one in five homes on Bondi beach are listed on AirBnB. Perhaps that extra bedroom isn’t really a ‘spare’, but it simply isn’t being used in a way that is traditionally measured.
There are, of course, slightly more common-sense reasons. Perhaps people want extra rooms for when people stay over, maybe people don’t use the bedrooms as bedrooms but instead utilise them as storage space or something similar. It could be, as Cameron Kusher from CoreLogic describes, the fact that “most Australians want bigger houses, in better locations, with more bedrooms and bathrooms and car spaces”. We’re a hungry nation, always wanting more – and it appears that our property market is no different.
Whether you are buying a tiny apartment in Sydney or detached house in the regions, make sure you get the right home loan speak to the lending professionals at Police Bank.