Four things to consider when upgrading to your next home
As fabulous as it is to secure your first property, there comes a time when you’re likely to want to upgrade.
This might be prompted by a range of factors, such as the fact your family is growing, your lifestyle has changed or you’re simply ready to take the next step on the property ladder.
But when it comes to upgrading there are a few things to keep in mind to ensure the process is smooth and your next property ticks all the boxes you want it to in the long-term.
With that in mind, here are four things to consider when upgrading to your next home…
Finance
If you’re seeking to upgrade your property, it pays to have all your financial ducks lined up long before you commence the property search.
Depending on your circumstances, this process will vary. Some people might be wanting to use the capital in their existing property as their deposit, others will be looking to sell their current property before buying a new one.
However you approach it, the key consideration is affordability, and not just affordability right now, but affordability in the future, should your personal circumstances or economic factors like interest rates change.
The best tip is to talk to a lender about your circumstances and get a clear idea on your available budget. If you’re serious about purchasing in the near future, pre-approval is a good idea too.
What do you want?
Upgrading to your next property is often about securing those things in a home that you want, unlike a first-home purchase where it’s all about getting a foot on the rung of the property ladder.
That means you should be crystal clear about what you’re looking for, based on your budget.
Things to investigate include location, nearby amenities that suit your lifestyle, the size of the home and additional features like a big backyard, swimming pool, guest accommodation etc.
Make a list of your non-negotiables, and also your nice-to-haves. This will help you narrow down the property search and at this stage you might wish to approach agents in the locations you desire to add your name to their buyer database.
Your future needs
As this home is likely to be where you spend an extended period, upgrading is also about considering your future needs.
That means you should think about how you will live in the property further down the track in addition to the immediate term.
For example, your children might be young now, but will you be living in this property into their teens? A teen retreat might be a feature you seek, or additional off-street parking for the extra cars they will have once they get their licence.
Buy or sell first?
This one is a major consideration – will you sell your current property prior to upgrading, do you intend to keep it as an investment, or will you sell once you have purchased your new home?
The best course of action is to discuss this with your financial advisor or lender.
Keeping your current property as an investment has tax implications, purchasing before you sell might mean you require a bridging loan, and selling before you buy might mean you need to rent a property for a period.
Looking to buy or sell?
If you’re considering buying a property or perhaps selling your existing home, why not chat with one of our friendly Eview agents on 1300 438 439?
You can also view our list of current off-market properties here.
