How to Upsize Your Home Without Wasting Time or Money
Are you experiencing growing pains in your current home? Is your home-based business expanding, and do you need more space to accommodate your growing business? Congratulations! You're succeeding where millions struggle and fail each year. But before you dive into upsizing your home, QuickProperties.Co.UK explains some crucial elements to consider first.
It's a Numbers Game
Like any major purchase, it's crucial to perform research beforehand. Several relevant numbers affect your home purchase, like current mortgage rates, your down payment, and much more.
- Mortgage: Understand the realities of getting another mortgage before spending days or weeks house-hunting for something you can't afford. Look for what you can qualify for, but also afford comfortably. Knowing this in advance can prevent you from going to open houses and considering homes you couldn’t afford.
- Utility Costs: A quick phone call to the utility company can help you budget for potentially higher energy costs with a larger home. The utility company can usually supply historical data about how a particular address is using up energy year over year, making it easier for you to create a realistic plan.
- Additional/Upgraded Furniture: It's exciting to move into a new, bigger space, but that excitement might lead to overspending on new furniture. Even though you're upsizing for the additional space, you may not have the money to furnish it right away. Some people choose to rent, but there are cons to this too.
- Higher property values: Moving into an upsized home may mean a new neighbourhood. This, in turn, could mean higher property taxes, utilities, and maintenance costs.
- As-Is properties: It’s easy to be lured into a too-good-to-be true home that has a compelling price but a handful of issues. The last thing you need is a money pit, so be careful about making an offer on a property that could have serious problems.
- Tax breaks: If you’re buying a new home to accommodate a business, it’s a must to explore tax deductions you may enjoy from having a dedicated home office. Before that, however, you’ll want to make sure that you are, in fact, properly structured as a business.
Planning Your Move
Okay, so you've finished crunching your numbers and are going for it. Now, it's time to start making decisions about your new home. What else do you need to think about before buying? You want to make your move the right move for your family and your business and make it worth the time, effort, and money.
When will you move? Some new homes require the sale of your current home before finalizing your new mortgage. Planning the sale of your current home along with the move-in date for your new one takes some strategic planning but can be timed to suit your needs. Carrying two mortgages, potentially for months at a time, could stretch your financial resources to the limit.
Also, are you evaluating the new space properly? When you're moving for the sole purpose of upsizing, you definitely want to make sure your new home suits your needs. Do your best to look at the space objectively. An open layout with small rooms may not be as satisfying when you spend all your time in a tiny office space and only coming out to a massive kitchen for a small portion of your day.
Remember, your location affects you more than you might think. For example, if you currently live in an urban area that offers amenities you regularly use, like a grocery store within walking distance or another shopping area that's only a 10-minute drive, moving away could cause additional adjustments.
Upsizing your home due to your growing business is a major life decision. After reviewing your financial options and searching for the home of your dreams, you can upsize with confidence.