There might be a number of possible reasons why you might be planning to upsize your home. It could be because you might need space to accommodate your growing family, or probably because you need additional space for your current work at home scenario. Whatever it is, you might need to keep certain things in mind.
Set a Budget
One of the most important things you might want to remember when you’re considering upsizing your home is the budget. Instead of first looking at potential homes and then trying to adjust your budget accordingly, it makes sense to first decide how much you’re willing to shell out. This will help keep you in track with your budget, and will also help your estate agent find suitable homes for you.
Also remember that you’ll also probably incur some additional expenses such as moving, repair and electrical work, bathroom fittings, utilities, furniture, home insurance, property taxes, landscaping and more. A lot of homeowners tend to forget about these additional expenses of moving into another, larger house, and end up over exceeding their budget.
Create a Plan
Once you have set out a budget to upsize your home, it is time to create an action plan to work on. This can include shortlisting different localities you might want to move to, talking to different estate agents, deciding on your new space requirements and other such specificities. This might need a bit more time in the current scenario considering how COVID-19 has caused the housing market to fluctuate and change in more ways than one.
You might also need to have a plan B in place in case you have finalized on your new home before your current home has a buyer- a bridge loan perhaps. Chalk out your expenses in this scenario too.
Keep Long Term Goals in Mind
Regardless of the reason behind your decision to upsize your home, you will want to keep certain long term goals in mind. If you have a loan on an existing property, you will probably need to add some additional principal amount, which might need larger monthly payments.
If you need help calculating the difference, try using this simple mortgage calculator.
Coordinate the Dates
Last, but definitely not the least, you will also need to coordinate the dates as you move from one home to another. This little step will ensure that you have a smooth moving process and an effortless mortgage payment situation.
Make sure you discuss the dates and details with your estate agent to avoid any awkward situations later.