So you’ve decided to move on from your first home, whether you’ve simply outgrown it or looking to upgrade. Think that purchasing your next home is easier than your first home? Been there, done that? Well, according to experts, buying a second or even third home can often be as daunting as buying the first one.
The key is, no matter where you are buying, is not to be influenced by “the market” more than by your own needs. The “right time” to purchase is when it is right for you, which doesn’t always coincide with what condition the market is in. Waiting for this magical “right time” or for prices to go up in down is taking a gamble on your family’s future and not worth it.
Luckily, with careful planning, understanding what you can afford and knowing how to sell and buy, upgrading homes can be hugely rewarding.
So, thinking of upgrading?
The most important thing to keep in mind if upgrading in today’s market is that mortgage rates are at record lows. They must increase at some point in the future, so it’s essential to calculate your mortgage repayments with this in mind.
If thinking of upgrading, questions to ask yourself include:
● How much equity do you have in your current home?
● Has my financial situation improved since my previous purchase?
● How have broader market values changed?
● Will I be buying and selling in the same market?
Buy or sell first?
Whether you can afford to buy first or have to sell first will come down to your financial position, with each option having pros and cons.
If you haven’t got capacity to buy before selling, your outlook can become more difficult in most markets.
However, for most people it can be better to sell first and then know your exact budget. You can purchase your dream home with confidence, without feeling rushed to make a purchasing decision - at worst you can rent in the short-term until you find your perfect home.
On the other hand, if you buy first you’ll be rushed into selling your property and may have to accept a lower price for a quick sale.
To find your perfect home contact Naked Edge Real Estate today.
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