Thinking of upgrading to a new home? Check out our 7-point checklist to streamline the move.
1. Is moving the right decision for you?
If you love your suburb and home but your circumstances have changed, it’s worth weighing up the pros and cons of renovating versus relocating. Without costs like stamp duty and agent’s selling commission, renovating can be cost effective. On the flipside, a change of location can be an exciting new beginning. Make sure your next move is the right move.
2. Sell first or buy first?
If you do decide to relocate, timing can be critical, although there’s no right or wrong answer to the question of sell first versus buy first. The main point is to know how you will manage the two transactions from a practical and financial perspective.
3. Get to know your borrowing power
You won’t be eligible for any first home buyer incentives that may have applied with your first home, but you will have the benefit of home equity to boost your buying power. You may be earning more or you may have started a family. Take the guesswork out of how much you can borrow and speak to someone to find out exactly what your buying budget looks like.
4. Choose a location
Your new postcode will influence matters such as how much you pay for your new home, your quality of life, and the sort of capital growth your next home is likely to notch up over time. That makes it worth investing serious thought into where you plan to live to be sure it fits your needs today and further down the track. After all, you can change your home but you can’t change the location.
5. Decide on the style of home that fits your needs
The type of dwelling best suited to your circumstances will depend on your budget and lifestyle. An apartment can offer the convenience of low maintenance living, while a spacious suburban family home can be a great place to raise children. Or you may prefer the character of a heritage home over a brand new master-built dwelling. Assess what you like and dislike in your current home and note the essentials – like the number of bedrooms and bathrooms you need – to compile a shortlist.
6. Maximise the sale value of your current home
Major renovations are not always a good idea at this stage, as a new buyer is likely to want to stamp their own mark on the property. However, low cost improvements like tidying up the garden to create curb appeal, decluttering the interior and giving the place a fresh coat of paint can add value and market appeal to the property. If your budget allows it, hire a stylist for expert advice on how to present your home in the best possible light.
7. Review your home loan strategy
Upgrading to your next home is an ideal time to shop around for a great home loan deal. Ensure your new home loan has the right features (and rate) for your circumstances. You need to be just as comfortable with your new loan as you are in your new home.
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