Important Questions to Ask Before Upsizing Your Home 

That old saying ‘bigger is better’ is not necessarily the case when it comes to property. Too often, we are attracted to the promise of a roomy abode, without considering the long-term stress of heightened mortgage repayments and upkeep. Upsizing can be a necessary transition, but before committing to a larger pad, it is crucial to consider your financial and familial circumstances. Here are eight questions to ask yourself before upsizing your home.

upsizing your home

1. Is this necessary?
It is important to assess your motivations for investing in a bigger home. Is your family expanding? Do you need more workspace? Or, are you simply pursuing a dream of living in a large, lux pad? Determining whether a shift to a bigger place is necessary to your current circumstances or future plans, will help clarify whether it is a healthy investment.

2. How many rooms do I require?
Buying a house is a long-term commitment. So consider your ten-year plan when upsizing your home. How many kids do you want to have? What will their sleeping arrangements look like? Will you host regular guests? Do you need spaces for entertaining or a home office? Do you have an ageing relative who is also likely to move in? It is important to be tactical about the functionality of a space. It is all too easy to invest in a larger footprint that is totally incompatible with your family’s needs.

3. How much can I borrow?
Do not rely on mortgage calculators to determine your borrowing capacity. It is crucial to arrange your finances and receive pre-approval for a loan, before committing to a property. Visit a lender and determine how much you are able to borrow for your new abode.

Image: Houzz – Martha O’Hara Interiors

4. Can I afford repayments?
What do your monthly finances currently look like? How might this change in the future, as your family (potentially) transitions to a single-income household with more dependents? It is important to carefully assess your monthly spending and also determine whether you can afford the higher monthly repayments.

5. Can I cope with additional utility expenses?
Inevitably, your utility bills will be higher than those in your previous home. Maintenance costs may also be elevated. These are factors to consider when assessing the financial viability of upsizing your home.

6. Is it more sensible to renovate?
Get some quotes and also do your research. If you have the space and permission, adding an extension onto your old home, or building up, might cost less than investing in a larger home. It is, however, advisable to consider the additional cost of renting while the renovations are undertaken.

upsizing your home

7. What about the other costs and responsibilities of upsizing?
Some of the hidden costs of upsizing include a higher stamp-duty, the potential need to engage Lender’s Mortgage Insurance, conveyancing fees as well as moving costs. These should all be factored in as budgetary concerns. A larger house also necessitates more upkeep. You might have a larger backyard, more rooms to fill and clean, more gutters to service. Do you have the time as well as the facility to manage a larger property?

8. What is my resale potential?
When thinking about upsizing your home, t is important, also, to consider the potential resale market for larger houses. Some elements of upsized homes, such as stairs, can eliminate whole categories of buyers (such as those with accessibility requirements or young children).

Are you in the process of building a new house? Contact our iBuildNew team on 1800 184 284 or book a call for free, expert advice on choosing the right builder for you.

Nikki Sitch

Nikki is completing a Bachelor of Arts with a double major in English and Creative Writing. When not studying, she is rearranging her share-house according to the latest interior trends.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Mar 05, 2018

First-Time Homeowners: 6 Tips for a Perfect Home of ...

As a first-time homeowner, building or buying your first home is probably one of the bi...
Read More
Aug 01, 2019

Cost Saving Tips When Building A New Home

When starting your exciting journey to building a new home, constantly adhering to your...
Read More
Nov 06, 2019

First Home Buyers: Here’s How You Could Buy With Jus...

Following the federal election promises back in May, the Government has now provided mo...
Read More
Nov 13, 2019

Stocking The Home For First-Time Buyers

That sense of relief you feel when you’ve finally overcome the massive hurdle of closin...
Read More
Jan 28, 2016

Finance Your New Home – How To Guide

Buying a house is probably the biggest financial decision you're going to make, so it's...
Read More
Sep 01, 2015

New Home Builds & The First Home Buyers Grant

We are all happy to get a little bit of extra help when buying a new home. In all State...
Read More
Jul 31, 2018

Queensland First Home Builders’ Grant Revised To $15...

Those looking to buy a house for the first time in the state of Queensland will now be ...
Read More
Jan 25, 2019

House Renovation Ideas to Add Value to Your Home

First impressions last, which is why house renovations can do wonders for a home’s valu...
Read More
Jan 25, 2019

What is buying off the plan and is it right for you?

For investors and first home buyers, buying off the plan can present an exciting opport...
Read More
Oct 25, 2016

First Home Finance Tips

Building your first home is probably the biggest decision you will ever make. The first...
Read More
Nov 22, 2019

Budgeting Tips For First Home Buyers 

For the average-income earning Australian couple, it takes approximately five years to ...
Read More
Mar 29, 2019

Mistakes made by first home buyers and how to avoid ...

Buying your first home is an exciting experience, but it comes with making many big dec...
Read More
Jun 26, 2019

First Home Buyers: Here’s How Long It Takes To...

Saving can be challenging at the best of times, but saving for a first home deposit can...
Read More
Jun 24, 2019

Different Types Of Home Loans And Choosing The Right...

Securing a home loan isn’t really the daunting task it’s made out to be. While a strong...
Read More
Oct 08, 2019

What To Look Out For At An Open Home

The open for inspection can be a critical time for most buyers as they survey their opt...
Read More
Feb 21, 2019

Stay and Renovate or Sell and Upgrade?

Finding what's best for you comes down to knowing how to act on a few key financial and...
Read More
May 08, 2017

Housing Affordability: What Australian First Home Bu...

Here at iBuildNew we are constantly reviewing and researching the best ways to help Aus...
Read More
Jul 24, 2019

Learning The Language For First Time Buyers

When purchasing property, especially for the first-time buyers, it is easy to be overwh...
Read More
Jun 17, 2019

Renovation Ideas: To Build Up Or Out?

Space is an increasingly prized commodity in the Australian housing market. As our fami...
Read More
Jul 31, 2019

5 Tips on Downsizing Without Sacrificing Style 

Whether it be as you approach retirement or as you seek a simpler, less expensive way o...
Read More
Mar 03, 2017

Regional Victoria First Home Owners Grant Boosted $1...

Those looking to build a new house in Regional Victoria after July 1 2017 will be entit...
Read More
Oct 30, 2019

Buying A Home? Plan Ahead For These Hidden Costs

It can be too easy to become swept up in the excitement of buying a property, that you ...
Read More
May 15, 2019

The Up’s and Down’s of Downsizing

Whether it be as you near retirement or as you seek a simpler, less expensive way of li...
Read More
Sep 17, 2017

5 Key Steps To Remember For Your Home Finance

It’s an exciting time when you decide to build your very own home, however, there is a ...
Read More

Get more from

Browse New Home Designs