Taking the upsizing step
Remember how your home was so perfect for the two of you? But now you have a couple of kids or an in-law living down the hall—that's no longer the case. The fact is your time to move to a larger home might have arrived. Researchers show a high number of the Australian population living under one roof with multiple generations.
So, have you asked yourself what you need in a home when upsizing or bringing many people under one roof? So, before you upsize beyond just square footage, there’s plenty more to consider. People often, focus only on the fact that they can upsize their home and the size of the house is all they on and later find out that it doesn’t work for them in the long run. So, here are the things to keep in mind before upsizing.
1. Think critically about your goals
Yes, we get it: You want to upsize. But have you thought, about why you want to upsize? So, before you start your house-hunting trail, take a moment to note down the things you need and want. Listing your goals will help you prioritize your needs.
2. How much can you afford to borrow?
Some of the factors that will affect how much you can borrow include your annual income, monthly expenses, proposed term of the loan and the number of dependents. You can quickly make use of online mortgage calculators to estimate your borrowing power. As you can see, upsizing your home can also provide an opportunity for you to review your financial situation.
3. Determine whether bigger is truly better
Before you start your search, you also need to consider the home's square footage and the layout as well. An expert once said, “What people want and need isn’t necessarily what builders are producing." “In this very hot market, they’re building the largest houses they can on the smallest possible lots in order to amortize the price, which doesn’t necessarily equal good rooms for families.”
4. Buy only space you’ll use
Also, before you proceed with your purchase make sure that all the rooms or features in the larger house will be used. An expert also explains that “When home theatre rooms were all the rage, it was a status thing to have a room with a very expensive system and theatre chairs.” “But many of those expensive rooms were barely used. That's not the way most people live."
5. Have you considered maintenance and renovation costs?
The fact is a more extensive property will also require higher costs of maintenance, utility bills, property taxes and home insurance, so be sure to plan all this all together when deciding to buy a more substantial property. Also, think about the cost of renovation when the house will need one. The cost of home improvement will also depend on the type of property and where it’s located.