A lot of homeowners are loving the fact that house prices have been surging, but it’s not so good for those looking to upgrade.
While an upsizer might get a fantastic sale price for their current property, they will also be looking at paying a higher price for their next home.
In some cases this can mean that the types of properties that an upgrader wants become further and further out of reach, and there is always the worry that property prices will go up between the time it takes to sell and then buy again.
A property upgrade is still possible in a booming market though, but you’re going to want to carefully assess the prices that properties are selling for and come up with a strategy to help you make the jump.
- Talk to a lender
Before you buy your next property you’re going to need to figure out how to finance it.
A lot of people choose to sell their current property first so they know how much money they have to spend on their next property, but as we are in a rising market there are going to be those hoping they can buy first and then sell.
Those looking to buy first may need to look at the option of using bridging finance to help tide them over. Another option, if you can do it, may be to turn your current home into an investment property after you purchase the next home, allowing you to get market growth from two properties.
Everybody’s financial situation will be different though, so you really need to have a chat with your lender to go through different scenarios and how they will affect your borrowing capacity.
- Decide on your property goals
Do you want more space, or are you looking for a better area? These are questions well worth asking yourself because in some situations it may be easier, or more financially savvy, to undergo a renovation rather than moving to a new property.
Of course, if you’re looking to buy in a new area where the average home costs more than where you are now, you’re going to have to ask yourself if you’ll be happy upgrading areas for a smaller or older home.
- Figure out the logistics of moving
Those looking to sell before buying their next home will need to ask themselves where they are going to live once their current home sells.
You may be able to move in with family or friends for an interim period, but if not then you will likely have to look at renting for a short term while you’re on the house hunt. This means that you could be looking at moving twice.
Those who buy first may be able to get away with only moving once, however if you list your property as soon as you buy you may wish to also stage your property and keep some of your items away in a storage facility.
- Start looking
Thinking about upgrading is one thing, but once you start looking at the types of properties available to purchase within your budget you may start to form a different opinion of what you want to buy (or whether you want to renovate).
It’s a good idea to start talking to local real estate agents, they may have some good pointers to help you juggle a sale and purchase and may even have suitable buyers or sellers ready to go so you can make your upgrade happen in record time.