Get a Sense of Your Current Property's Value
Let's start by getting a good idea of how much your current home is worth. No worries, it's easy! Consider getting a professional appraisal. They'll give you an estimate of the selling price and even tell you how much your property has appreciated since you bought it. You can also use a number of tools on websites like realestate.com.au which will give you a free indication of how much your property is worth.
This takes to our next point:
Understand your equity for your next property purchase
Equity is simply the difference between the bank's valuation of your home and the remaining amount on your mortgage. Picture this: If your home is valued at $1.2 million and your outstanding home loan stands at $500k, you've got $700k worth of equity.
Think of equity as a powerful resource that can bridge the gap between your current home and the dream home you've been eyeing. It's like having a financial cushion that can be used to take that exciting leap toward a larger and more desirable property.
Think about whether you’ll buy first, sell later.
What if you've stumbled upon your dream home but haven't managed to sell your current property yet? One possibility your bank or broker might suggest is a bridging loan. Think of it as a bridge between your current and future homes, allowing you to secure your dream home while you work on selling your existing property. Make sure you understand this process as bridging loans generally offers short-term access to funds, usually at a higher rate of interest.
Know What You're Aiming For
Before diving headfirst into upsizing, take a moment to reflect on your objectives. What's your dream for this new property? Are you looking to enhance your lifestyle or explore an investment opportunity? Jot down a list of must-haves, like the perfect size, number of rooms, and the ideal location. This list will be your compass throughout the decision-making process.
When choosing your new, larger home, think about your long-term goals. Consider the lifestyle you envision, the schooling needs of your family, and whether this will be your forever home or a potential investment opportunity. It's your chance to shape your future, so dream big!
When you're upsizing your home, it's the perfect opportunity to embrace the convenience and innovation of smart home technology. If you’re building your next home, things like smart appliances, home automation, energy saving initiatives are all things you can easily consider!
By considering the value of your property, defining your objectives, exploring alternatives, crunching the numbers, dreaming long-term, you're well on your way to making this journey a success.
For more information on upsizing your home, speak to one of our friendly New Home Consultants who are experts when it comes to first homes.
*Please note, any information given to you by Simonds is general information only and will depend on your own personal and financial circumstances. We recommend that you make your own independent enquiries and seek professional advice from a qualified financial planner, bank or broker.
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Simonds acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn and work.