With a generation of baby boomers entering retirement there is no end of information on downsizing a home.
On the other hand, for a generation of homeowners with entirely different needs what do YOU need to know when it comes to up-sizing your home?
Common reasons for upsizing
Chances are you’ve been perfectly happy in your first little house or apartment, but life changes – along with our living requirements.
Reasons for up-sizing may include:
- having children
- a growing or blended family
- starting a home business
- additional family moving in
- buying a larger property while keeping the first as an investment
Before you start…
Moving on to a new stage of life can be both exciting AND scary. The most important task is to define your goals and do your homework BEFORE you proceed.
Key points you should consider are:
Long term goals
What are your future plans in terms of lifestyle, kids’ schooling, additional children, potential investment or financial return?
When choosing the size, type and location of a property, asking yourself these questions will help you define the right property for both now and in the future.
We can help you determine your current equity and potential borrowing capacity for your individual circumstances.
If you haven’t had a property valuation for a while it’s possible that during that time, capital growth or renovations have resulted in equity you didn’t realise you had! Ask us for a property report for your area!
If you require a valuation we can assist you with a referral to our property valuation specialist to determine what potential equity you may have.
Of course a larger home will also translate into increased costs. Just some of the costs that should be factored into your financial considerations are:
- Maintenance costs – lawns, gardens, painting etc. Swimming pool? Make sure you add pool maintenance!
- Utilities – include transfer costs, plus heating and cooling a bigger space will probably mean larger ongoing utility bills.
- Property taxes – council rates will most likely increase. Don’t forget stamp duty either – this is often a significant cost in a property purchase. Land tax may also be applicable.
- Home insurance – home insurance premiums will increase exponentially with the value of your new property.
- Furnishings – with more rooms to fill you may need to factor in not only more furnishings, fixtures and appliances but home and contents insurance will also need to be reviewed.
- Renovations – are renovations part of the plan in order to ensure your new ‘dream home’ matches your dream?
Research and consideration of all possible costs involved in upsizing your property will help you move forward with confidence.
As your finance specialist it is our role to help you explore finance and structure options most suitable to your individual circumstances and your future financial goals.
So… you’ve explored your financial options and you’re almost ready to take the leap. What’s next? Now is the perfect time to start preparing for your big move, especially if you’re contemplating listing your current property for sale (or lease) in the next peak selling/buying season…
This can be both necessary and cathartic but remember you will also be filling a larger space. Assess items on usefulness – no point in tossing it only to have to buy a replacement! Start packing and storing now – not only will you declutter your home ready for market you’ll also be ahead of the game come moving time!
Painting and repairs
Ideally, you will only want to spend as much as is necessary to ensure or improve the market appeal of your property.
Seek guidance from our experts at The Agency with knowledge of similar properties.
If up-sizing your property is on your wish list this year then call Mortgage & Finance Solutions today on 1300 857 762 and we would be pleased to book you in for a chat!