Most people associate ‘significant transitions’ involving their homes with the need to “downsize.” However, it’s equally as significant when more space is needed that requires “upsizing” your home. No matter the reason for upsizing, it creates a pivotal moment for those involved. For the sake of clarity, “upsizing” means buying a home with more space, larger rooms, or even with a higher price tag. As a result, this bigger home will require more upkeep and could mean moving further out-of-town in order to achieve this space while sticking to the budget.
Upsizing may present itself in the following scenarios: Your family is growing, your income increased (cha-ching!), or you are ready to graduate from your first homeownership opportunity. Whatever the case may be, there are some challenges to overcome while making this transition to a larger (and most likely) more expensive home.
Typically when looking for a home that accommodates significantly more space, you will be moving further out of the heart of town. ‘Burbs anyone? This lifestyle change may present a challenge as moving away from all of your ‘favorites’ can be a bit heartbreaking. Your favorite restaurants, your go-to gym, maybe even work remains around the corner…from your current home. While having the businesses you frequent conveniently around the corner is positive for your gas mileage and social life, it is not conducive to finding a compromise between location and space. A good rule of thumb for location, is being at-most 30 minutes from work and/or in an area of town you spend the majority of your time in.
Your first home’s mortgage has probably become very manageable and comfortable, which has created lots of discretionary income for you to spend. We all know that making a jump to a more expensive home may increase your mortgage by a noticeable chunk. Are you ready to spend 20-30% more of your income every month on the house? Always make sure to factor this financial shift into your budget and ensure you can financially still treat yourself from time-to-time. A new house should not make you sacrifice everything you enjoy! And don’t forget…you’ll have to furnish the extra spaces as well!
Must Have List:
Having those rare great school districts, in your area, are extremely important for growing families and also resale. While in search for a larger home, make sure to factor in a good school district as one of your “must haves,” even if you do not have children or plan on having children. Good school ratings have very positive effects on neighborhood home values, appreciation, and overall impact of a desirable community.
Bigger House = Bigger problems
Along with more space, a larger lot, and a more extravagant backyard, comes along with more upkeep! More upkeep will cost a homeowner more money throughout the year. With this upkeep, you may need extra help in the form of landscapers, pool/spa services, regular pest control, and the list goes on and on! While buying this dream home, be sure to factor-in what added up-keep expenses will arise.
If you are about to experience a significant transition, let’s chat about the pros and cons, as well as options that work best for your situation. Having someone to listen and provide sound advice is critical in times of situations like this one.