Moving home is always a big decision, even more so if you are considering moving to a larger property. For many, moving on up the property ladder seems like a no-brainer, but there are several factors to consider before taking such a step.
For a start, just make sure that you really do want to move. Are you moving because it’s desirable or because it’s necessary? To what extent will it improve your quality of life? The big move can entail plenty of hassle, so just make double sure that it’s worth it. Once you’ve decided that it’s the right thing for you, the next question to ask is whether you can afford it?
- Consider the mortgage: You may have a good relationship with your current lender, but they may not be so forthcoming in financing a move to a bigger, more expensive property. For a wide range of options, visit State Custodians Mortgage Company and other market leaders. Just make sure that you can confidently meet the repayments.
- Pay off existing loans: The key to securing a mortgage is a good credit score. So before you approach potential lenders, make sure that you have already paid off any other outstanding loans, especially for large items such as cars.
- Higher bills: Moving to a bigger property will almost certainly mean spending more money on heating, water, gas, electricity and any other utilities. It costs more money to keep a bigger home warm and comfortable, so factor this into your monthly budget.
- Other expenses: There are plenty of additional extra costs which you also need to consider. It is more than likely that a larger property will incur a more expensive property tax. Find out exactly how much more. Also, your bigger space will need maintaining and so you might need to factor in the costs of a gardener, cleaner and other people to help keep everything in working order.
Once you’ve decided to move somewhere bigger, it is very important that you sell your current property. Most people simply cannot afford to finance mortgage payments on two properties and so if you purchase a new home but can’t sell your existing property, you could find yourself in a world of financial bother. Even if you are sure that somebody will buy your current home, test it out on the market first. You just don’t know if your personal evaluation of the home you have lovingly cared for over a number of years actually matches its real market price. If you can’t make the kind of profit that you’d like on a sale, this could force you to reconfigure your calculations.
Finances aside, there are plenty of other considerations when moving. Think about the kind of community you’ll be moving into. Trading up to a bigger home may mean a very different area accompanied by a whole new social set with different expectations. Just make sure that you are ready to make such a change to your life. Finally, wherever you do decide to move, you should be confident that the bigger home you are about to buy has a good re-sale value. It may sound odd to think about a re-sale before you have even bought, but your bigger home should also be a profitable investment.
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