Upgrading simply means selling your current home and purchasing one that’s a little further up the property ladder. There are many reasons why you might want to upgrade your home but it’s important you have a full picture of what is involved before you upgrade. You should always seek professional advice before making major financial decisions like upgrading your home.
What are the benefits of upgrading?
There are many reasons why you might want to upgrade your home. These are some of the common benefits of upgrading:
- More space to grow your family – As your family grows you may need some extra space. Maybe you’re about to become parents for the first time and you need a nursery, or the kids are getting older and want their own bedrooms.
- A better location – You might want to be closer to certain amenities, move to a location that has the primary and/or high school you prefer, or you might want to move closer to family and friends. There are many reasons you might like to upgrade to a better location for your circumstance.
- Moving from an apartment to a house – Your first apartment may have been your dream home at the time, but now your financial situation has improved, you might be looking to moving into a house with more bedrooms and a backyard.
- Relocating for work – If you are relocating for work, you will need to find a new home close to your new work location. You could be moving to the next town or to the other side of the country. This can be a great opportunity for you to find a home that’s a little further up the property ladder.
As your family grows you may need some extra space
Things to consider
You have probably built equity in your home to help facilitate an upgrade, but there are some things you should consider:
- Calculate the costs – Upgrading can involve some unexpected costs. You will likely need to pay the costs associated with buying a home as well as the costs of selling a home. To get a better idea of the costs involved in buying a home, read the article on page 8.
- Get an accurate estimate – You can get an idea of what your house is worth through a local real estate agent or online from research groups. A valuation carried out by a certified practising valuer (CPV) or residential property valuer (RPV), which involves inspections of the property inside and out, can provide a more accurate figure.
- Be sure you want to move to your new location – When moving to a new location you should do your research. It’s important to know if the location has everything you need, like health facilities, schools and entertainment.
- Explore all your options – When you are considering upgrading, explore the reasons why your current home is no longer the right fit for you. Would renovating be a more cost-effective option for you? Be sure to explore all your options before making a final decision.
Source: Helia – It’s my home magazine
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