If you are really considering upsizing your home then before doing so there are some important questions that you need answers to, so you know that you are making the right decision.
You need to know the reason why you are thinking about upsizing. This will give you the right start of what to look for in your new larger home. It may be that you are getting married, or in your present home there just isn’t enough room for the kids. You may even be considering starting at home business. Whatever the reason, you need to be clear about it so you know you are making the right decision as this is going to be a big change for you.
It costs money to upsize
Buying a bigger house is going to cost more money than a smaller one. You need to have your finances in order. You need to know exactly how much money you have coming in and what your new expenses are going to be. Chances are you are going to have to borrow money so you are going to need this information in order to apply for a loan.
You are going to need to know the details of the loan in regards to how much it is going to cost you and the length of time you will have this new expense. There are some resources that you can use to help you figure out the cost of borrowing like mortgage calculators. However, the only information you should count on as factual is that which is supplied by the lender. Once you know exactly how much you can afford to borrow, and how much you will qualify for, then you know what your budget is for your new upsized home.
Think about your future
While upsizing now may be the short term solution how is it going to fit in with your future. Is this new change taking place because of the lifestyle you want, or are you considering it as an investment. The answer to this is going to play an important role in where you buy your upsized home. If you are thinking of it as an investment, then what is available to you may not suit your lifestyle.
Consider the increased costs
With a upsized home you can expect an upsize in your household expenses. The utilities will cost more, and the property taxes will be higher and so will your home insurance. These are substantial expenses that you need to consider closely.
You may want to ponder upon some alternatives to upsizing by making a move. Instead you may want to take a look at perhaps adding an extension onto your current dwelling. If funds are needed for this they may be available through the equity that you have built up in your current home. If this sounds like an appealing option keep in mind the resale value.
Consider the additional cost involved in the Upsizing move
You will have several one time expenses that have to be considered like the stamp duty and agent feels for example.
Weathering out the financial storm between the sale and purchase
You need to be cautious about buying a new home before selling your old one so you don’t get caught carrying the expenses of two homes.
There are many factors and questions to be answered when it comes to making the big move of upsizing to a larger home.