Upsizing is one of the most common trends among homeowners. Sure enough, anyone promoted on their jobs or who had another kid would think that would need more space.
However, there is more to upsizing than what meets the eye. While it can be the best decision for some, some homeowners might be on the brink of bankruptcy because of upsizing.
What is upsizing?
In layman’s terms, upsizing is the process of leaving your old home to move to a bigger or more spacious one. A flat owner can opt to buy their own, or a homeowner can move to a house with an enormous backyard.
What are the factors to consider in upsizing?
To determine if upsizing is the best option for you, here is a quick list of things you must consider when moving to a bigger home.
1. Long term goal
Upsizing can be costly. To make the most of your decision, you would have to live on that property for an extended period. So, if you’re thinking that you and your family will be moving out of your target home soon, then it’s not the right time to do upsizing.
2. Buying or building
While buying is one of the easiest ways to upsize your home, you can also consider building your dream home. This way, you can be sure that you’ll get everything that you want, which consequently diminishes your urge to find a new property again.
However, note that building isn’t just more expensive, but it will also demand time and effort on your end. If you’re willing to commit to those, it’s best to start planning for your dream home.
Last but not least is your budget. It’s highly recommended to upsize your home when you’ve already paid off your mortgage. This way, you can have an initial capital in buying or building your new home from selling your old one.