Anyone who is considering upgrading their home should consider the following key issues before purchasing a more expensive property:

* Consider buying an established property rather than building a new home. There are many hidden or forgotten expenses involved in building which include, renting another property while the new home is being constructed, fitting out the new home which can exceed more than $50,000, as well as possible time delays in construction .In contrast, when you purchase an established property you can move directly into the property and you have a finished home.

* Buying a more expensive home does not automatically mean that your new property will increase in value at a much higher rate than a lower priced property. It is wise to check the annual capital growth rate of the area for the previous 10 years before making a final decision on the property.

* Always focus on the land value of the property as this will determine the long term capital growth of the property. For example, it may prove financially more rewarding to buy an older home on a block that has the potential to be subdivided than a much larger home located on a single residential block.

* If you are considering buying a much larger home because you have teenage children remember that issues such as ‘smart wiring’ are becoming more important due to the growing use of computers and televisions by all members of the family. Check the size of bedrooms as teenage children require much larger bedrooms.

* Many homebuyers who own an existing home are now considering bridging finance to fund the purchase of the second home while they sell their existing home. By using this technique of making an offer on another home without having it subject to the sale of an existing property, home buyers are in a much stronger negotiating position. This can often lead to achieving a discount on the purchase price of the new home helping to offset the accumulation of additional interest repayments.

By Adrian Ballard – Director, Jones Ballard Property Group