You might think that owning your first home involves having to live there for good. You might want to switch to a new one. You will have to think about investing in a property where you could feel more stable and comfortable, especially when you’re earning more and your family grows. Your current home might fit your needs today, but you will reach a point at which getting an upgrade is well-deserved.
However, securing a larger home isn’t a decision you can make lightly. Even if you think you have enough in the bank to purchase one all in cash, you still need to be strategic with your options, ensuring that every second and cent you put into it will yield lasting results. If you’re looking for practical advice on how to go about this, then the tips below should help you get started on the right foot.
1. Think about the long term
Your choice of a larger home should always be anchored on a long-term plan you have for yourself and your family. Think about the future and decide on the type of home that aligns with your goals.
If you’re a Canadian homeowner who has just opened an RESP for your child through CST Savings, and you don’t plan on adding another member to the family, you might want to consider a home that’s large enough to accommodate your child until they reach college. That way, you can put a threshold on your budget if you’re ready to purchase a new home anytime soon. By looking at the long term, you can avoid having to pay beyond your means for a large home that doesn’t accommodate your future needs.
2. Get the best value out of your current home
As you decide on purchasing a larger home, you will want to make sure your current living space sells for more than its original value. The best part about homeownership is that you get to earn extra cash to finance your new home purchase through the equity you’ve gained.
So long as you make timely payments on your current home and opt for improvements guaranteed to boost value, you can boost the final sale price and use the extra funds to upgrade to a larger home.
3. Look at the surrounding neighborhood
Don’t think that size is all that matters in choosing your new home. You also have to consider other factors that may affect long-term livability. You will only waste hard-earned money on a property that’s too far from the nearest main road or that’s situated in a neighborhood that’s notorious for having a high crime rate.
As you look for your next purchase, be sure to do a thorough inspection of the surrounding environment and see if it offers plenty of benefits in terms of amenities, walkability, and overall comfort before finalizing your move.
See also: Keeping Your Home Clean While Working from Home – Tips from Our Cleaners
4. Be prepared for higher homeownership costs
When you upgrade to a larger home, expect to pay more across the board. For the most part, you may enter a higher tax bracket on top of being required to pay higher HOA fees and insurance premiums. Maintenance expenses will also be higher, especially if your new home comes with extra amenities such as an above-ground pool and a dedicated home entertainment center.
This is not to mention the amount of repairs you will have to deal with over time. So before you decide to move to a larger home, never make the mistake of overlooking higher expenses that could bleed you dry.
Endnote
You might not be planning for an upgrade anytime soon, but it matters to be wise and strategic so you will make your move to greener (and larger) pastures less costly and hectic.
