People upsize for all kinds of reasons, from improvements in financial situations and having several children in the house to elderly parents moving in or starting a home office. But making the choice to upsize your home requires careful considerations and planning. Follow these deliberations to ensure you're on the right track.
Find Out How Much You Can Afford To Borrow
Several factors will influence your ability to afford a larger loan. They include your financial status, income, household expenses, loan term, amount needed, and the number of children you have. Your ability to buy a larger home can end up being complex, so you may want to speak to your lender about your potential borrowing power. Your lender will assess your situation and recommend how much more you can borrow, although keep in mind that in some instances, your situation may be worse off than before. Once the lender establishes your loan amount, you can look at specific homes in certain suburbs that fall within your purchasing profile.
Consider How You Intend To Live In The Home
Your lifestyle will determine the kind of home you want to buy for you and your family to live in. For instance, if you have small children, then you'll likely want an outdoor play area. If you like guest entertaining, then you may want a large, landscaped backyard with ample space. If you enjoy spending time watching movies as a family, then a family entertainment room may be a key priority for you. If you are a fitness freak, then perhaps a swimming pool and indoor gym are key priorities for you. Consider your personal lifestyle before making the choice to upsize your home.
Consider Whether You Will Be Able To Afford Maintenance Of An Upsized Home
House maintenance is a factor you need to consider when you decide to upsize your home, especially if you're moving from an apartment to a freestanding property. For instance, you will need to consider landscaping costs, water taxes, council fees, home and contents insurance, renovation work, and repairs. Make sure you budget all these additional factors into your monthly expenses when making the choice to invest in an upsized home. It's important that you're realistic here so that you avoid living beyond your means.
Buying a larger home can be rewarding for people who make the right choices. Consider these factors to ensure that you're making the best possible decision for you and your family. Contact a real estate agent for additional advice.