Trading up for more space

Podjanee and Masaki Takeda wanted more space, a good school and a central location – they knew something had to give. They share their story with Pattie Pegler.

Growing family, Covid-19 lockdowns and working from home have many of us hankering for a bit more space. But if you want to trade up and get that extra bedroom and more flexibility, what do you need to consider? And how much will it cost you?

With a growing daughter and a new business, Podjanee and Masaki Takeda wanted to move on from their three-bedroom home. ‘‘We had been thinking about it a lot, especially as our daughter gets older,’’ says Podjanee. ‘‘We wanted more space, more storage space, and we thought an extra bedroom is always good for visitors.’’

Staying central was key for the Lynfield couple. ‘‘We grew up in central Auckland, and we wanted to stay around here, and we wanted a good school zone’’.

They sorted out their finances and got pre-approval so they knew their budget, and they put their home on the market with a long settlement date.

But they had quite a list of requirements and when they started the search for a fourbedroom house in the area, they realised there was a problem.

‘‘We went to auctions and soon realised they were way out of our budget. We saw one go for $2.6 million. I hadn’t realised how crazy the market was,’’ says Takeda.

So they reassessed – and location won out over bedroom number four. Not long after this they found a three-bedroom property in Epsom.

‘‘We didn’t tick all the original boxes, but we have more space, an extra bathroom, a double garage and lots of storage,’’ said Takeda.

With the two-storey configuration they also have options for the future.

‘‘You can’t be too fussy, and you need to be a bit flexible,’’ is Takeda’s advice for others looking to upgrade their home.

Stuff Homed asked some real estate agents around the country for their advice.

Start with the money

‘‘Go to your mortgage broker and get some certainty,’’ says Christchurch real estate agent Alison Aitken.

‘‘Until you know what you have to spend, you don’t know what you can buy. You really need to get cashed up.’’

Making offers conditional on your own property sale is also unlikely to work in the current market says Aitken.

So she advises selling your home with a long settlement date, like the Takedas did.

This will mean you know exactly what you have to spend, and will give you time to buy and move into your larger home.

‘‘Go to your mortgage broker and get some certainty. Until you know what you have to spend, you don’t know what you can buy. You really need to get cashed up.’’ Alison Aitken Christchurch real estate agent

What will it cost?

Putting a definitive price tag on that extra bedroom varies from region to region, suburb to suburb and property to property. And it can be hard to compare like with like.

A new, three-bedroom townhouse could cost around $1 million in Christchurch’s central four avenues area, while a four-bedroom house in the same area would be hard to find, often due to the sheer cost of land and the council requirements around density of housing, says Aitken.

It’s probably a large part of the reason most people looking for extra space tend to move to the outer suburbs, says Aitken.

Sell that central threebedroom townhouse, move outwards, and you could find a

four-bedroom family home for under the $1m mark.

Four is the ‘golden number’

The most typical trade up sees people going into three and fourbedroom homes, says Wellington-based agent Grant Henderson.

Two-bedroom houses are very hard to find, and for many four bedrooms is ‘‘the golden number’’, he says.

‘‘Four bedrooms and two bathrooms are generally a bit more pain for a bit more gain.’’

In Auckland earlier this year, real estate agent Rick Mozessohn sold two neighbouring properties in Mt Eden – one a three-bedroom home and one a four-bedroom.

The latter went for $2.075m – it may look like a big price tag to those outside the city, but it was just $175,000 more than the threebedroom house next door.

Think about what you need

Like many property transactions, trading up usually involves compromise. That extra space may mean a longer commute if you opt for a lifestyle block on the Ka¯ piti Coast.

Or you may need to go for an older home with potential.

‘‘If you’re not afraid to do DIY or renovate, buy a home that needs work. That’s a good way to trade up,’’ Henderson says.

But Mozessohn, who noticed a real increase in those trading up post lockdown last year, advises a more open-minded approach to space. Rather than just looking for an extra bedroom, you could consider the overall floor area and the configuration of the bedrooms in particular.

Some layouts offer more flexibility as families grow. For example, you may want your 5-year-old in the bedroom next door – but will that work as well when they’re a teenager?

Will a three-bedroom home with larger living space work better for you? Or do you absolutely need that extra bedroom, and will you accept less living space as a trade-off?

‘‘The other option is to stay put and price up an extension,’’ adds Mozessohn.