February 14, 2018
There are two types of upsizers. Those who want to move to a bigger space, and those who desperately need more room in order to feel comfortable in their own home. Whether you’re ready to live a more spacious lifestyle or your family is growing, choosing to upsize may be a smart option.
But, where do you start? How can you get the bigger, better dream home without impacting your life and your finances in a negative way?
As you probably already realise, upsizing to a larger home is a big decision with a lot of factors to consider. Will you be able to find your new dream home? What type of space requirements are the most important – a play area, guest room, a huge bathroom to relax in and get away from all the people and pets in your home?
To optimise your property upsizing process, first look at your reasons behind your move. Then, use our simple guide to getting started to ensure you get everything you need out of the experience.
Upsizing is the process of seeking out a bigger home or a nicer property. It doesn’t necessarily have to mean buying a more expensive property. For example, retirees ready to move out of the city because they no longer need to live near their job may be able to purchase a roomy, luxury home, which costs less than their high-priced real estate close to the city centre. Where some empty nesters opt to downsize once they’ve retired to a nicer, lower maintenance property, others want to finally get the chance to experience the spacious living they didn’t have time to enjoy during the busy parenting and working years.
Upsizing can be an issue of wants, needs or both. If your family is growing, and you have a set of twins on the way, moving to a larger house may be critical. A dog who needs more room to roam, regular visits from family and friends, or relatives moving in can all put pressure on your once comfortable apartment or modestly-sized two-bedroom home.
You may also want to upsize to improve the quality of your life. If any of these must-haves are on your wish list, upsizing may be important for getting what you want, and getting peace of mind:
- You’ve always wanted your own vegetable garden and the two potted plants on your apartment balcony aren’t enough anymore.
- You started working from home and need a dedicated office space so you can stop working at the kitchen table.
- You started a craft or hobby and want a home studio to pursue your passion.
- You are absolutely done sharing a bathroom with the kids.
Take a look at your priorities. If living a less cramped lifestyle could open up possibilities for you and your family’s well-being, it may be time to upsize.
When you upsize, the goal is to get all (or most) of the features you are after in a bigger or better home, and to not get in over your head financially by changing homes and taking on more mortgage debt than you can comfortably handle.
Here’s what you can do to ensure the smoothest experience possible:
Upsize at the right time.
When you are upsizing, you probably don’t need to buy a bigger home right away. If property prices are rising, which they are still expected to do over the next year in areas of Australia outside of NSW, you may want to wait until prices have come back down. Ideally, the price gap between your current property and your new will be as small as possible.
Understand the costs.
The costs of refinancing and moving should be weighed against the benefit of moving to a larger or nicer home. If you love your current location, your neighbourhood, and your house, but only need more space, decide if there are other solutions to a lack of space, such as a home renovation.
Identify your priorities.
When looking for your next property, you may not be able to get the full laundry list upsizing wants. Decide what you need the most – more bedrooms, bathrooms, a garden space, a spacious kitchen. And decide what you can sacrifice. If you move to a location with less expensive property prices, you may be able to get more of your wants.
You’re moving now to adjust to your family’s lifestyle needs. Will you have other needs in a few more years? Will you be able to accommodate them with the home you are purchasing?
Upsizing can be exciting. Make sure you are clear on what you are looking for and then watch the market for an ideal time to buy. With patience and planning, you can get the bigger, better home you picture.
When you do decide to purchase your next home, you may need to refinance your current mortgage. We can help you find the ideal loan for your needs to go with your new home, making your upsizing experience go as financially smooth as possible.
Written by Refinancing.com.au
Refinancing.com.au is an end-to-end service that helps people refinance their home loan. We empower you to search for your home loan, and choose the process that suits you.
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