Second-time buyers often fail to account for all costs when upgrading, such as stamp duty, legal fees, and the ongoing expenses of a larger home.
Many buyers make the mistake of assuming their current home will sell quickly or for more than it’s worth.
Shopping for homes without pre-approval can lead to disappointment and wasted time.
Buying your next home may not be your first rodeo, but that doesn’t mean you’re immune to costly mistakes. In fact, many second-time buyers fall into traps they didn’t face the first time around. Why? Because the stakes are often higher.
You’re managing another property, juggling equity, possibly growing your family, or seeking a long-term lifestyle shift. The emotional, logistical and financial load can make even the savviest buyer stumble.
At Aussie, we’ve seen it all. So here are our list of most common mistakes second-time buyers make, and more importantly, how to avoid them.
1. Upgrading without a realistic budget
The mistake: Buying at the top of your budget without factoring in the real costs of upgrading.
Your dream home might have a bigger kitchen, a yard for the kids, or that fourth bedroom, but it also comes with bigger bills. Stamp duty, legal fees, lender costs, removalists, and the ongoing costs of a larger home can quickly eat into your buffer.
The fix: Start with a holistic view of your finances. Use Aussie's Borrowing Power Calculator to get a quick idea of what you can borrow, then budget backwards.
Consider future rate increases, school fees, utilities, and lifestyle costs. A good rule of thumb? Keep at least 10% of your total purchase price as a buffer.
Also think about upgrade-related costs like new furniture, landscaping, or renovations that might not be urgent but could add up quickly. An Aussie Broker can help you weigh up your loan options while building in flexibility for the road ahead.
2. Buying before getting your old home valued (or sold)
The mistake: Overestimating what your current property is worth, or assuming it will sell fast.
You’d be surprised how many second-time buyers commit to a new home, only to realise they’ve priced their existing one too high, or worse, can’t sell it in time. This can force rushed decisions, bridging loans under pressure, or in some cases, having to withdraw from a purchase.
The fix: Before you fall in love with a new place, get a realistic estimate of your current home’s value.
You can request a Free Property Report from Aussie that includes suburb trends, recent sales and price guides. Talk to local agents to understand what’s selling and what isn’t.
If you’re not ready to sell yet, explore bridging finance options, but understand how it impacts your loan approval, cash flow, and interest costs. A carefully timed plan is key.
You might also be interested in: What is a bridging loan and how does it work?
3. Shopping without pre-approval
The mistake: Browsing homes without knowing your lending limit.
You see the ideal house, you’re ready to make an offer, but your lender says no. Or worse, you get part-way through the application only to find an issue with your borrowing capacity or credit history.
The fix: Always get your finances sorted first. A pre-approval gives you a clear price range to work with, makes your offer stronger in a competitive market, and saves time. It also flags any issues with your financial position early, so you can address them before falling in love with a property.
Pre-approval also shows sellers and agents that you're a serious buyer, which can give you the upper hand in a fast-moving market. An Aussie Broker can help you compare pre-approval offers from over 25 lenders**
4. Not thinking long-term
The mistake: Upsizing for today without thinking about tomorrow.
That extra bedroom might be enough for your toddler now, but what about when they’re teenagers? Or if your parents move in? Or you start working from home?
The fix: Think 5-10 years ahead. Look for floorplans that can adapt. Flexible spaces (like studies or rumpus rooms), good school zones, and future-proof features (like accessible bathrooms, wide doorways, or even dual-living options) can save you the cost of moving again later.
Also consider neighbourhood changes. Is infrastructure coming? Will traffic increase? A Buyer’s Agent can help you spot properties that tick the boxes now and keep ticking them as your lifestyle changes.
You might also be interested in: Do I need a buyer’s agent to buy a home in Australia?
5. Overstretching on the mortgage
The mistake: Maxing out your borrowing power and ending up “house poor.”
Just because a lender approves you for a certain amount, doesn’t mean you should spend it. Life doesn’t stop after settlement. You still want to enjoy dinners out, holidays, or renovations, not live under constant mortgage stress.
The fix: Test-drive your new repayments before you buy. Use Aussie's Repayment Calculator to see what your future mortgage might look like, then try living on that budget for a few months.
If it feels too tight, aim for a lower price point or reconsider what you really need.
Also factor in what could change. Will you drop to one income during parental leave? Do you want to renovate in the next few years? Your broker can help you plan for the lifestyle you want, not just the loan you can get.
6. Going it alone when you don’t have to
The mistake: Not using expert support when making one of the biggest financial decisions of your life.
Many second-time buyers assume they’ve “been there, done that,” but upsizing involves new complexities. You’re managing two properties, navigating timing issues, and possibly upgrading to a more competitive market.
The fix: Surround yourself with people who know the process inside and out.
A Buyer’s Agent can help you find off-market deals, negotiate better prices, and avoid emotional overbidding.
An Aussie Broker will compare thousands of loan options, structure your finance properly, and support you all the way to settlement.
At Aussie, we offer both, so you can plan your upgrade with confidence. You don’t need to do this alone. Let experts do the legwork so you can focus on finding a home that truly fits.
You might also be interested in: Sell or rent out? What to do with your current home when buying a bigger home
7. Trying to time the market
The mistake: Waiting for the “perfect” conditions or misaligning your buy and sell timelines.
Some upgraders hold off for interest rates to drop further or for their current suburb to peak and miss great opportunities in the process. Others rush in without a plan and end up stuck in short-term rentals or selling low under pressure.
The fix: Focus on what’s right for you, not the headlines. Good opportunities exist in every market, especially if you're buying and selling in the same cycle. The key is having a plan and building in some flexibility.
If you're unsure whether to sell first or buy first, talk to an Aussie Broker about the pros and cons, including bridging loan options or conditional offers. They’ll help you map out your timeline and avoid making rushed decisions.
How Aussie can help you upgrade smarter
Upsizing is a big move emotionally, logistically, and financially. But you don’t have to go it alone.
At Aussie, we’re here to make every step simpler, smarter and more supported. Whether you're working out what you can afford, needing clarity on your current home’s value, or trying to time your next big move, we’ve got the tools, tech and trusted expertise to help.
From your first chat with an Aussie Broker to your final step through your new front door, we’re in your corner with guidance, insights and confidence that comes from doing this every day.
Avoid the common traps and upgrade with confidence. Talk to an Aussie expert today.