Are you considering upsizing with a new house purchase? Sometimes, you outgrow a smaller home as your family grows and your needs change. You can tell when it’s time to upsize as you run out of storage space, have another child, or need to work from home for a new job. There are heaps to consider and sort out when upsizing, from securing a suitable home loan, to organising removalists for your existing furniture, and perhaps even deliveries for any new furnishings purchased in anticipation of your larger living spaces.
The process of moving into a larger home can be so much to manage that it can all get quite stressful – especially for larger families. But fear not, because we’re here to help. This article will cover the ins and outs of upsizing, unveiling everything you should consider when moving into a bigger property. Read on to learn more.
The first thing to consider is whether you should put your old home on the market for sale or retain it as an investment property. A few things will guide this decision. For instance, unless you have unlocked enough equity in your old home, you may need to sell it to obtain a deposit for your new, bigger house.
However, if you have some decent cash savings, you could use them with your equity for a deposit on the larger home and retain your old home as an investment property. This will create a passive income stream suitable for the household budget and allow you to retain a significant asset, which is always a bonus. You can use the rental income to pay the first home’s mortgage, with some leftovers.
Remember that with a bigger home, comes steeper stamp duty costs. Although some regions across the globe (like many states in Australia) have waived stamp duty for first home purchases, this may not be the case for you. So it pays to factor in these and other upfront costs prior to embarking on your big move.
Stamp duty is a tax paid on the purchase of property that funnels revenue into state government coffers and pays for essential infrastructure like roads and waterways and services like hospitals and schools. If you took advantage of this for your first home, you must pay stamp duty on the new purchase. This is usually a percentage of the home’s value – 5-7%. You’ll need to factor this into purchasing the more extensive property and ensure that you have enough cash available to cover it.
Another upfront cost that you’ll want to account for as early as possible are the expected costs of insuring your home. As soon as you’ve arranged the transfer of title or the mortgage for your new larger home, you need to insure it fully. After all, you’ll want to be covered in case of any unforeseen events, such as fire, flood or other natural disasters. The last thing you want is irreparable damage to your new dream home.
Once again, you can expect insurance costs to be higher for a larger property, so be sure to consult with an insurance provider or two to get a solid understanding of what you can expect to pay on insurance when looking to upsize your family home.
You should book your removalists earlier on in the moving process. This is to ensure all the logistics are sorted before your moving day. This will happen sooner than you think, as time can fly during a moving process. Ensuring you’ve booked means a smooth and painless moving day.
Keep in mind too that you will often need to provide an exact inventory of items to move for the purposes of receiving an accurate quote from your removalists. So be sure to write up a list of all the items you’ll need assistance moving – just to avoid accruing any extra fees.
When getting ready for your big move to a more extensive property, it’s best to be ready and all packed by the time the removalists come on the big day. Packing for a move is challenging and often takes longer than expected, especially if you’ve got young kids running about. So, as soon as you know you’re going to upsize to your bigger home, begin packing.
It’s a good idea to pack the less frequently used rooms and items first, such as spare rooms, the garage and items like games, books and lesser-used toys. Then, pack the commonly used items closer to the move date, such as the dining room, kitchen and living room. Ensure you label each box clearly so unpacking will be seamless.
Finally, if you are looking to purchase a larger home on a limited budget, you shouldn’t feel pressured to borrow right to your limit. There may be some properties out there that sell for a reduced price because they may be in need of some repairs or renovations. If you do happen to come across the opportunity to purchase a fixer upper, then we encourage you to consider it.
Nowadays, there are plenty of ways that you can refresh an older or outdated property without breaking the bank, so think critically about the renovation and refurbishing solutions that may be available to you. With a little careful planning and budgeting, you should be able to craft your dream home and boost the value of your property in one fell swoop.
This informative article has shared the guide to upsizing 101 and what to consider when moving into a bigger property. Follow the advice provided above, and you’ll be sure to have a breezy and painless time moving your family into a larger home.