Your present home no longer fits your lifestyle. It’s time to move on. What are the things you should consider before heading to the next housing phase of your life?
What type of area suits your needs? Are you looking for a place nearer to work or your aging parents? Perhaps you are looking for a different style of neighbourhood. There’s much to do before you’re ready to buy another home.
New beginnings are part of every move. Moving is a costly experience that typically requires payments during the time of ownership. The thought and act of purchase is exciting, however, for new and experienced homebuyers.
The first question you should answer is why you are moving. Are you ready to abandon city living for the more relaxed pace of the suburbs or perhaps move to an area where the cost of living, including taxes and insurance, are lower than what you currently pay? Is the primary reason for moving ultimately because the size of the house is no longer comfortable making it desirable to downsize or upsize your home?
Why downsize a home?
Outgo exceeds Income: Escalating property taxes, house payments, and HOA fees are eating up stagnant earnings
Free Time: Longer vacation benefits at work or newly retired status with the urge to travel rather than stay home taking care of the yard
Empty Nest: The children have grown, left home, and there’s too much space
Exchange of Lifestyle: Suddenly there are rooms and features in your home no longer used, such as a family room and swimming pool
Ready to Do and Spend Less: Reduce the cost and amount of cleaning, home improvements, and other expenses
Why upsize a home?
Significant increase in income: An impressive promotion at work, huge inheritance, or winning ticket
More space required: Parents move in, you’ve had a baby, or you need room for supplies for your home business
Additional yard space: You want a patio and built-in brick barbeque, want a family garden, just added a large outside dog to the family
Whether your goal is to downsize or upsize your home, it’s important to remember it will affect your financial ability for many years.