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Key considerations before buying a bigger home

By Andrew Bell

As your family grows, what once may have been the perfect fit for you and your partner may now be erring on the side of claustrophobia. Or, perhaps you're not looking to purchase a larger property for the sake of children; rather, you simply desire more space to accommodate your growing hobbies, interests, or personal belongings.

Regardless of your reasoning, one thing remains constant: buying a bigger house comes part in parcel with a range of financial and lifestyle considerations that need to be carefully weighed and planned for.

In this article, we'll address three key factors to consider before buying a bigger home.

Is the timing right?

If you're among those looking to purchase a larger home due to increased family demands, then you may not have the luxury of waiting months or years to time the market.

Even if you find yourself short on time, make sure to take into account the following factors:

  • Is the property in the area where I plan to move undervalued or poised for a market correction?
  • What do the forecasts predict for the future of this region, and how might that affect my retirement plans?
  • Have I thoroughly investigated my financing options, and can I comfortably handle the expenses of purchasing a larger home if the property market is inflated?

Conversely, if you have the added benefit of time, take the time to conduct due diligence to understand relevant property market trends, the appreciation of property in your desired area, and potential factors that could impact the value of your investment over time.

Ultimately, aiming to perfectly time the market among the complexities of day-to-day life may prove difficult. However, by conducting a prudent property evaluation, you can ensure you're making a move in the best interest of your current and future self.

Financial implications associated with a bigger home

A larger home comes part in parcel with increased costs — some expected, others less so. Financial implications that are commonly associated with a larger home include elevated mortgage rates, heightened maintenance costs, and increased utility bills.

However, less-commonly thought of financial implications may include:

  • Greater council rates, comprising property taxes, homeowner association fees, and other local government charges that are directly proportional to the value and size of the property.
  • Elevated insurance premiums, as larger homes often have higher replacement values and entail greater insurance costs.
  • Costlier furnishings and decorations, as larger living areas necessitate a greater amount of furniture and decor to fully occupy the space.

In addition to the increased price of the property itself, these factors can also impact your financial future — either positively or negatively — depending on your financial situation and long-term goals.

Before you buy a bigger home, it's essential that you carefully consider all relevant factors and seek professional advice if necessary. Our team at Ray White Surfers Paradise can assist you in evaluating all pertinent options and making the optimal decision for you and yours — reach out today!

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