Purchasing your very first home is exciting, however, upgrading your home can be even more gratifying because you are inching closer towards acquiring your ‘dream home’. The key to upgrading success is not to overcommit or fail to do your due diligence.

In this article, Paul Hill Realty Hope Island goes through what you need to know before upgrading to your next home.

What will it cost to upgrade?

Paul Hill Realty urges upgraders to ensure their financial ducks are in a row before they start house hunting.

It is not simply borrowing capacity you need to take a look at, you likewise need to comprehend your lifestyle expenses and also if those expenses will go into the future with you. Buyers ought to consider what may impact their earning capacity as well as expenses in the years ahead, such as maternity leave, school fees, and any overseas travel.

It is typical for buyers to begin their house hunt looking at properties beyond their budget. People need to manage their expectations when upgrading their homes within their budget. Keep in mind that the higher home loan needed for that upgraded/ dream home will impact their monthly cash flow, their lifestyle, as well as their retirement.

Paul Hill Realty agents can assist buyers to calculate the transaction costs of upgrading, from stamp duty on the purchase to sales’ commissions and marketing on the sale plus moving costs.

Make a decision if you want to buy first or sell first.

If you desire to minimise the stress that happens when purchasing property, Paul Hill Realty advises that you sell before you buy. This way you know you have got the capacity to borrow the amount of money you need for your upgraded property.

That said there would be some upgraders who decide to buy first and may then need bridging finance. Now, a bridging loan is a short-term, high-interest loan that covers the cost of purchasing a property prior to you selling your current property.

On the other hand, if you make the decision to keep your current home as an investment property, you will need to think about the tax implications. It is more likely your new home loan will have very high debt and your investment property will have a comparatively low amount of debt, which is not great from a tax viewpoint.

What do I need today and what will I require in the future?

If you are upgrading your home, it needs to keep pace with the growth as well as the changes expected for you and your household. You need to decide what you wish for and what your life may look like in five to 10 years’ time.

Will you need more car spaces for parking? Will you need to be near schools? Will you have teenagers that need some room for study desks?

Do not simply think of your current needs, ask yourself whether the property you’re looking at will be flexible and grow with the needs of your household. Additionally, if you are intending to buy a property that requires renovation or a knockdown rebuild, be sure to check with the local council on what is permitted.

Analysis but not paralysis.

With your budget set, it is time to get acquainted with the property market, however, don’t allow endless research to side-track you from the end objective, especially if prices are increasing swiftly.

There is a great deal of information readily available online, it can almost be too much. Currently, investing time to research is costing you in price increases. So, research until the point where you are confident you can comfortably price a property.

You can do this by, firstly attending auctions to get a real-time picture of demand and sale prices. Secondly, attending open homes so you can see first-hand the good and the bad of properties that present beautifully online. Finally, gather sales data available on property portals to build a picture of pricing in your chosen suburb. An informed buyer can make an informed offer to purchase a property.

Looking for a Reputable and Professional Real Estate Agent on the Gold Coast?

Remember experienced property managers can save you time, money, and headaches.

If you are a landlord looking for an experienced property manager with your best interests at heart – look no further than Paul Hill Realty Hope Island! You will not find a team that is more respected, reliable and trusted in residential property sales and management.

Paul Hill Realty office is located at Hope Island, and we professionally manage residential properties anywhere on the Northern end of the Gold Coast. Paul Hill Realty Hope Island is your best choice in property sales and management.

Learn more about Paul Hill Realty Hope Island – click here.

Get in touch with one of our experienced team at Paul Hill Realty Hope Island by calling 07 5577 1888.