Climbing the property ladder can grow your wealth and simultaneously meet the needs of a changing lifestyle.
Starting a family, growing your family or just looking for a lifestyle improvement are all great reasons to upgrade. But as a new property will often come with a bigger mortgage and more responsibilities, which makes your choice of a new home incredibly important.
You must not only consider your current needs and financial ambitions but how they might change in the years to come.
As your real estate agent, we can help you identify the critical attributes of your ideal property and your desired financial return.
Sometimes, it’s beneficial if you come with some “must-have” features, which we can build on with you. These might be solar power, good internet access, close to transport, schools and your workplace or even a garden or pool.
It’s also helpful to know whether your next home is just one of many intended rungs up the property ladder or a forever home.
We will also assist you in valuing your current home, advise you on any renovations that might immediately add to its value, and help you put it on the market through private treaty or auction.
Here are nine tips to help you upgrade to a new property:
Assess your budget – You need to know your numbers. You should have a good idea of the value of your current property, and the ceiling of your borrowing capacity. It’s a good idea to get pre-approval for your new loan from your lender before venturing into the market and to sell your current property before you buy.
Prioritise lifestyle – This is more important than the quality of any property you might wish to buy. If you love cafes and restaurants, then you need to stick to suburbs where they feature. If you’re starting a family, then perhaps a suburban home is more suitable or a larger unit in a great location.
Financial growth – Homes that need a fix-up can deliver the best financial gains. However, they are not often plentiful and can attract heavy bidding from builders and developers who see the same potential. If you don’t fancy the workload of renovation, then you’ll find excellent investment opportunities in suburbs that are starting to gentrify. As your agent, we can help you identify local suburbs that are gentrifying in our area.
What’s your style – Decide on the type of home you’ll be comfortable in. Are you seeking a larger apartment with a view, a four-bedroom house in a dormitory suburb, or something in between? Be sure of exactly what you’d like before beginning your search. If you’re not sure, consider renting for a period to trial different home styles.
Consider your space needs – If you’re about to start a family, then bedrooms, bathrooms and kitchen are essential elements of an ideal property. A spacious garden is also a plus, but perhaps you can find a home near a local park.
Go for good bones – A property with “good bones” will save you thousands of dollars in structural renovation costs over the years. Pay attention to what might need updating and features that might be missing, such built-in wardrobes, which would have to be retrofitted. This is especially important if you extend yourself financially as your budget may mean you have to wait before making improvements.
Hot and cold questions – Be confident the properties you inspect are built appropriately for their climate. Family homes need to be comfortable, so ensure properties have good insulation and air-conditioning that covers living areas and bedrooms. In new homes, you should expect to see passive heating and cooling.
Understand running costs – Large gardens and pools require maintenance and equipment. Make sure you have budgeted for an increase in running costs for things like electricity, transport if you’re moving further out of town, and general upkeep, so you’re not caught offguard.
