How to upsize your home
Buying a bigger home can be challenging so we’ve put together a few tips and tricks to help make upsizing a breeze! Here are a few things you can do to make upsizing easier.
Upsizing a house means moving out of your current home into a bigger one. It’s the opposite of downsizing, however, the reason for upsizing a home may be similar. Most homeowners choose to upsize their house for two reasons: they’re experiencing a lifestyle change and/or they can afford to.
Buying a bigger home can be challenging so we’ve put together a few tips and tricks to help make upsizing a breeze! Here are a few things you can do to make upsizing easier:
Figure out your finances early
Before you upsize your home, you need to make sure you can afford it. Upsizing to a bigger property usually leads to more expenses. In addition to the purchase price of the property, you need to consider property taxes, insurance, utilities, moving costs, and other hidden expenses.
Review your income, savings, debt, and expenses to determine an appropriate budget. Also, take into account your current home’s property value. The proceeds from your current home could help you purchase your next one. If you want to get a better idea of how much you can borrow from a lender, consider applying for a pre-approved home loan.
Decide if you’re selling or buying first
Each option has its pros and cons. If you sell your home first, you could use the proceeds from the home sale towards buying your new home. However, you won’t have anywhere to stay while you’re waiting to close on your new home. This could mean additional costs for temporary lodging and rental storage space.
If you opt for buying first, your finances may be strained as you’ll be struggling with two house payments at the same time. Building a new home offers a similar issue of doubling your current housing costs. You can solve this problem by getting a bridging loan, which allows you to purchase a new home as you wait to sell your current one.
Consider your options carefully. It may be a good idea to go through your finances with a professional to figure out which option is the best for your situation.
Understand your current and future needs
The most common reason homeowners upsize their home is because of a lifestyle change. For example, your family has grown considerably, and you need bigger common areas and more beds and baths. Or perhaps, the nature of your work has changed, and you find yourself needing a home office.
The key to a successful home upsizing is knowing how big you should go. You don’t want to go through all the trouble of moving houses only to find out it’s too big or too small. Consider you and your family’s current needs and how a bigger home could solve that issue. You should also take into account what you may need five to ten years down the line.
Know the risks and rewards of upsizing
The most obvious reward to upsizing is being able to live in a home that fits your lifestyle better. Another benefit is that a bigger property could be a better investment as larger properties tend to have higher value. This is especially true if you move into a neighbourhood with favourable market conditions. The location of your property plays a big role in its market value. When looking for a home, it’s a good idea to study suburb reports to get an idea of the neighbourhood.
There are also drawbacks when moving to a larger home. The maintenance, insurance, taxes, and utility costs will likely increase once you’ve moved to a bigger property.
Set a criterion when house hunting
It’s easier to find the perfect home when you have a clear idea of what you want. Make a list of non-negotiables to narrow down your home options quickly. Go online and view homes on property websites or get the help of a real estate agent. Also, know when to compromise on a home feature or amenity.
You should also have a checklist of must-haves with suburbs. You can always renovate a home, but you won’t be able to change the neighbourhood. Make sure the area you move to during your home upsize fits your lifestyle needs.
Ready to upsize your home?
Get in touch with loans.com.au and see what home loan option is right for you. Whether it’s a new home loan, a bridging loan, or a construction loan, we have a range of finance solutions for you to choose from. Speak with our friendly lending specialists by calling 13 10 90 or apply for a loan today!
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About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
