Last Updated: 21st September, 2022
Your Guide To Upsizing Your Home
In Australia, there is a known market trend of upgrading homes as families grow in size. In cases like these, upsizing is often a necessary move. If you are thinking of upsizing, there are benefits and downsides that you need to consider. The first thing to remember is that upgrading into a larger home can come at a significant cost. Apart from that, there are a bunch of things to go over before making the big move.What Is Upsizing?
Wanting to upsize and needing to upsize are two different things. If a little maintenance and renovation can solve the issues you have with your current home, upsizing is not the answer. But if your family is growing and you are ready to upgrade your lifestyle with a bigger mortgage, that’s when the need for upsizing arises. Calculate your needs and make sure you consider a few things before you research further.Where to start
- Double Check With Your Lender: When you upsize, it is likely that a lot of equity from your home will be used to make the move. Your down payment, along with your purchase price, will go up. This means you might be able to get a bigger mortgage from your lender than you currently have. Discussing these things with your lender and even asking for a pre-approval might be helpful. Talk to one of our brokers today to assist you with getting pre-approved.
- Decide If You Can Handle A Bigger Home: Ask yourself this question: Do I have enough time, money and resources to maintain this bigger home? If you are already having trouble maintaining your current home, you might want to think about what you don’t like doing and get a house that eliminates that issue.
- Do You Buy Or Sell First?: Once people decide it is time for them to upsize, they often are undecided about whether to buy first or sell first. Experts say the better way to go is to sell your old home before you buy a new one. This is to make sure you have funds ready from your sale for when you decide to proceed. You will also be able to put more money on your mortgage, and can avoid going back and forth between two mortgages at the same time.
