The most common reason for a family to leave behind their old house for something new is because they are running out of room.
As your family grows, so does the need for more living space. However, a larger home usually does come with a larger price tag.
Here, we go over when it makes financial sense to upsize your home and when it does not.
Why do you need more space?
Upsizing does not necessarily mean that you plan on having kids, or more, like most people may think.
It can simply be a matter of your 900 sq. ft. apartment not accommodating your needs anymore. Or you and your significant other are getting serious and need a home together with space for all your combined belongings. Maybe you are taking in a family member that needs care and attention.
There are several reasons as to why you may require more space to live. The most important factor is that each member in the household has access to the amenities they need, and they are happy.
Convenience is key, and if the household can afford to pay extra for these conveniences, then it may be time to upsize.
When the cards are right
Buying a larger home can be overwhelming when it comes time to look at the financial aspect of it all.
These are great opportunities to take advantage of if you have been thinking of upsizing:
- You have recently gotten a raise or promotion at work
- You inherited a substantial amount of money
- It’s a seller’s market and you can sell your current home for top dollar
- Your home has significantly appreciated in value
- You found a great deal on the perfect home
Also, keep in mind the location of where you plan on moving. If it is somewhere new, the market may be cheaper or more expensive there.
You can even opt for a larger home that may need some cosmetic issues addressed. This can end up saving you money and you can work on renovating the house at your, and your wallet’s, convenience.
Other items to note
If you have been seriously thinking of upsizing your home, then you probably have good reasons.
Not only will the mortgage cost a bit more, but keep in mind these other factors that can drive up your costs:
- Utility costs
- Energy costs
- Repair and maintenance costs
- Property taxes
- Home insurance
- Furnishing costs
All in all, the decision to move your family into a larger home is solely dependent on your needs and financial situation. Make sure you have the right Real Estate professionals on your side to help you determine if it is the right decision.