You may be feeling you’ve outgrown your starter house, whether in terms of lifestyle, family size or the amount of work you need to put into your current property. Whatever the reason, many people dream and aspire to a larger home. Here are some of the factors to consider to decide if you’re ready for a bigger home.
You should be settled in your career before you consider getting a larger home. You should have job security and a paycheck that is enough to cover a larger mortgage. If you know where you will be in the next 10 to 20 years, that is a good sign you are ready.
You will need a cushion if things go wrong. It is essential not to invest all of your savings into a down payment.
You should be debt free or have minimal debts. You should pay your mortgage off or nearly. The fewer debts you have, the more you will be able to spend on your dream home.
You must have enough disposable income to afford a larger home. Check out this home loan calculator from The Home Loan Expert to give you an idea of what you could expect to be paying for a larger property. You should factor in that a larger home will cost more on utilities and maintenance.
You should consider a larger home if your family is growing. It will be harder to raise a family in an apartment. You will need enough bedrooms for the number of children you hope to have.
You should factor in the cost of raising a child with the cost of a mortgage and upkeep with a larger home. You should also consider that you or your partner will need to stop working for some time when you have a baby.
You should be prepared for the additional upkeep that a larger home will require, including cleaning, gardening and furnishing.
If your hobbies and passions have outgrown your home, then upsizing is the natural next step. For instance, you may want more space for your car collection or a craft room.
You should ensure you are buying a larger home for the right reason, like a growing family and need for more space. Many people buy a larger home as a status symbol. It is crucial not to make major financial decisions based on vanity.
The decision to upsize your home is primarily a personal one. You will need to consider your finances carefully and ensure you are in a good position for the additional cost. Your current mortgage will ideally be paid off so that you will not have to raise an even larger mortgage for your new home.
Weigh up the pros and cons carefully. If in doubt, consult a professional financial advisor who will be able to give you an idea of whether your plans are sound.