Everything you need to know about upsizing
Has your home felt a whole lot smaller in recent times? Whether you have a growing family or you are just after a bigger another bedroom or an extra bathroom. After all, outgrowing your current home is a natural process. It might, therefore, be a priority that you seriously start thinking about upsizing. Whilst the prospect of a big property might be exciting but it is not always as simple as it sounds. Not only do have to organise the purchase of your new home, but you also have to sell your current home. Moreover, you have to take into consideration an increased mortgage, as well as higher maintenance costs for a larger property. But how do you ensure you get the best deal on a bigger property, and how do you choose the right property? Here is everything you need to know about upsizing.
Reasons for upsizing
There are a host of varying reasons that might motivate you to upsize. It could be that your current home simply cannot accommodate your growing family. On the other hand, you could be seeking a larger yard for the children to freely roam. Whatever the reason, there are always factors to consider and careful thought to be put in.
To start with, it is essential to critically assess your financial affairs to see if you can afford a new home. On the face of it, the addition of a single room may not seem like much. However, such an addition translates into a lot of money. Likewise, trading a flat for a house comes with a massive price difference. In addition, you need to seek professional assistance to go over your financing and mortgage options. Remember to keep in mind the amount you are likely to get for your current home when you sell it. Fully have an appreciation of the deposit required for your new home and the monthly financial obligations. Moreover, you need to understand the current housing market and the various factors that are in existence. This is essentially important as it will determine how much you can sell your property and how much you will purchase your new home.
Lastly, you need to understand that your financial obligations transcend beyond the property purchase. Upsizing translates into a long-term financial commitment that you need to give serious thought and ascertain if you can afford. Furthermore, a large yard may require you to retain the services of a gardener or purchase equipment to assist with the maintenance.
Beyond just living in your upsized home you need to think about the property’s resale value. With this in mind, it is essential that you seek property in areas with great growth potential. Moreover, you need to look at areas in close proximity to amenities and that can benefit from increased transport links and improved facilities. However, if you intend to stay at your upsized house for a relatively short period of time then do the math carefully. From mortgage options, moving costs, to conveyancing costs there are several considerations to take into account.
Another equally important consideration you have to take into account is if your new property for expansion if the need should arise. If for one reason or another you decide to expand your property then is the property big enough to facilitate that.
In conclusion, remember that your motive for upsizing should be driven by practicality and necessity. There are certain things that might seem enticing on paper, but do you really need them? In addition, are they worth the extra financial demands. Also, remember to carefully assess the neighbourhood as this will determine the rate of appreciation and the resale value of the property. At the end of the day weigh it all up before taking the plunge.