Upsizing your home FAQ's
Upsizing your home FAQ’s
There are many reasons you might be looking at upsizing. Perhaps you’ve just got married, have started having a family or have had more kids than your current place can accommodate. Perhaps you’re starting a business at home and need the extra space or have a family member moving in with you. Whatever the reason, here are some questions you should ask yourself before you make the move.
How much is your current property worth?
For the majority of us, our property is our most valuable asset and in most cases you’ll be selling your current property to upsize to a new home. Therefore, understanding how much your current property is worth is critical. Invite a LJ Hooker real estate agent to appraise your property as this will give you a clear understanding of how much your property is worth and how much it may have increased since you bought it. By knowing this you can start to understand how much money you will have to spend to on the upsize.
How much can I spend on my next property
Working out your budget and how much you can afford should be done in partnership with your home loans specialist. They will look at the equity you have in your current property, your annual income, monthly expenses, number of dependents and the proposed term of the loan. LJ Hooker Home Loans
has a handy home loans calculator but it’s a better idea to talk to a lender about your personal situation. Knowing your budget is key to finding the right property that not only suits your needs but suits your budget.
Can I afford the larger expenses that come with an upsized home?
Upsizing your home will mean that your expenses will be higher than what you are paying now. Your utility bills, repairs and maintenance costs, home insurance, even furnishing the place will be more. You need to ensure you can afford to pay these extra expenses.
What are your long term goals?
When looking to upsize, keep your long term goals in mind. For example if you are buying a property as an investment your objectives are about making money, however if you are looking to buy a bigger home for personal reasons your goals are going to be more lifestyle related. If you are clear about your goals in the beginning, it will provide a better chance to choose the right property that will meet both your current and future needs.
Would it be better to renovate your current home?
Renovating and staying put can sometimes be the better and cheaper option than selling and buying a new home. Have you scoped out what is possible at your current property? Do you love where you live but just need more space? Can you add an extra floor to create more space / bedrooms, can you add a granny flat to the property if you need to accommodate an elderly family member? Renovating can improve the comfort and functionality of your current home and if done right should increase the value of your property as well. The most important factor when renovating is to make sure you don’t over capitalise. Here
is an a article that will help you here.
What are the costs of upsizing?
Apart from the obvious – the home will cost you more, you will also have to consider the other costs that come with buying a bigger and often more expensive property. Make sure you factor in stamp duty, lenders mortgage insurance, bridging loan money if you buy before you sell and need money to pay for the new home, legal help, building insurance, inspections fees and moving costs.