Upsizing: Starting Your Journey to a Larger Home

If you’re considering upsizing, it’s important to establish some basic elements. You should be clear on not only on the goals you wish to achieve by upsizing to a larger home, but also the amount of money you can spend to do it.

Upsizing is more than just moving to a larger property, you will need to define what it is that you aim to achieve with a larger space. Whether it’s extra living space, more bedrooms to accommodate a growing family or a larger garden with a pool and entertaining area, clarity is key. If you go into a purchase without this clarity, you can risk making an expensive mistake.

The biggest constraining factor, of course, is finance. Collaborate with your bank or mortgage broker to determine a realistic spending limit. This way, you’ll avoid wasting your weekends looking at homes beyond your financial means and can limit your search to properties you can afford.

So, to help you transition to a larger home, here are six essential questions that you need to ask yourself before you begin your upsizing journey…

What equity do you have in your existing property?

This will be a critical factor in determining your level of borrowing to upsize. A quick call to your bank or lender will give you the latest total that you owe on your mortgage and your options about getting a larger loan.

How much is your current home worth?

It’s a great idea to ask a local real estate agent to appraise your current property as a first step to upsizing. It will give you a good idea of the price your home might achieve and discuss homes that are on the market and suitable for your needs. If you’re located in the Snowy Mountains region, the sales team at Henley Property are always happy to help!

Calculate your spending limit

Work with your lender or mortgage broker to set your spending limit. It’s a good idea to have your bank commit in writing to the total loan it will provide, as this will help you to organise your finances in the event you need to move quickly to beat rival buyers or bidders.

Do you have the ‘extras’ covered?

You’ll need to factor in stamp duty, pest and building inspections, legal/conveyancing fees, a possible bridging loan and increased insurance costs for a larger home.

Can your cash flow take the hit?

Don’t underestimate the additional costs of owning a larger house. You’ll be paying more taxes and rates, as well as facing larger utility bills, plus the additonal costs of managing new features like pools or larger gardens.

Is renovation a better path?

If you already love where you live, renovations are always a possibility. You’ll be able to alter your home to cater for exactly what you are looking for in a larger home and in the style you love. But you also need to take into account the stress it may cause and the potential for the renovations to go over-budget. There are pros and cons, but at least when you buy a new home, you’ll know your costs in advance. That’s not entirely true if you renovate, where the list of unknowns can be extensive.

If you’d like to take the first step towards upsizing, contact us for a free property appraisal. As the leading real estate agency in the Snowy Mountains, the award winning team at Henley Property are here to help you understand how prices are performing in the current market, help you work on a plan to ready your home for sale, and give you an understanding of what your home might be worth in the current market. You can request a free, no-obligation appraisal on your property by filling out an online appraisal request form. Let us help you take the first steps in your upsizing journey.