Is upsizing on your wish list?

calendar April 4 2018

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 upsizing 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 upsizing may include:

  • marriage
  • 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
  • windfall/inheritance
  • 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.

    Borrowing power

    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 awhile it’s possible that during that time, capital growth or renovations have resulted in equity that you didn’t realise you had! Ask us for a property report in 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.

    Additional costs

    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. Ask us for a quote!

    Furnishings
    with more rooms to fill you may need to factor in not only more furnishing, 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.

    Getting ready!

    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…

    Decluttering

    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 necessary to ensure or improve the market appeal of your property. Seek guidance from our experts with knowledge of similar properties.

    If upsizing your property is on your wishlist, call the office and we would be pleased to book you in for a chat!

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