If you’ve lived in your house for quite some time already, you’re going to want an upgrade at some point. But before you remodel your home, there are important things that you should consider.
The current mortgage or loan rates in Utah and other places with great real estate prices make it enticing for many people to get a better and bigger house. For many growing families, upsizing the home is often the only option to make enough room for everybody. On the other hand, many homeowners also want to upgrade to a better home that will be a good investment in the long run.
Are you thinking of getting a bigger home? Here are the things you should think about first:
1. Your goals
For many families that get a bigger house some years after they bought their first one, it’s mostly due to the increased space requirements with new babies or pets added in the household. This situation, along with many others, can be the reason for a house upgrade.
Think about this: Why do you need a bigger house? How are you going to make use of the additional space? Can you not make do with your current home? Whatever the reason for your desire to get a new house, you should think twice–even thrice–about your goals, and how a new house will help achieve them.
2. Your income
A bigger house almost always means a bigger price tag, so take time to consider your current income and how a new mortgage will affect your household expenses. Can you afford a bigger house? Is your pay better than what it was when you bought your current home? Can you still afford to live comfortably even with the bigger house?
When considering your financial capacity to upsize your home, don’t forget about the higher expenses for utilities, taxes, maintenance, and furniture, too.
3. Interest rates
Take a look at the current interest rates in your area to determine if it’s the right time to buy a new home. Interest rates may fluctuate from time to time, so make sure to hold off taking out a new mortgage if you’re not comfortable with the current rates.
4. Hassle of moving
Moving to a new place often means new neighbors, new schools, new work opportunities, new friends, and a whole new environment for you and your kids. Can your family handle the stress of moving? Will they be able to cope with a new environment that comes with new people and new locations? Aside from the financial aspect of upsizing, consider the emotional and mental effects that it can have on your family members.
5. Equity of your current house
If you’ve built up sizeable equity for your current house, you will be in a more comfortable position to buy a bigger one. Consider your current equity and determine if selling your home will cover the majority, if not all, of the down payment and the monthly payments after that.
Bigger is not always better. And before you even consider moving into a bigger house, think of ways that you can increase the space in your current home, such as decluttering, remodeling, or building an extension.