1.05.2022

How To Upsize Your Home Affordably'

 

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There are times when a bigger home may be a necessity. Perhaps you’re thinking of starting a family or you’ve already got kids who are growing up. Alternatively, you may be having to accommodate older relatives who can no longer live on their own. Continuing to live in your current home could be uncomfortable. But what if you cannot afford to spend more on a larger home?

Fortunately, there are many tricks you can use to make upsizing less costly. Below are just some of the ways to upsize your home affordably. 

Renovate, don’t move

It’s possible that you may not need to move to a bigger home - if you own your property, you may be able to find ways of adding extra space through renovations. This could include building an addition or converting unused space such as a loft.

Renovating could work out less expensive in the long run and you don’t have to deal with the stress of moving. Just make sure that you find the right contractors and use the right funding methods.

Buy a fixer-upper

A fixer-upper is a property that needs a lot of repair work. While this could mean high future costs, it could reduce the upfront costs of buying a larger home - you could find that a three-bed fixer-upper is the same cost as a two-bed property in good condition.

You can find fixer-uppers through specialist agencies and auctions. Ideally the property should be in livable condition - this allows you to move in without having to make repairs immediately. 

Move to a cheaper location

The solution could be to simply move to a cheaper location. Often central locations are a lot more expensive than those in more remote locations - a three bedroom house on the suburbs of a city could be worth the same as a two bed apartment in the center. Just be wary that this could mean dealing with a longer commute and less amenities on your doorstep.

Sites like Compass can allow you to compare property prices in different neighborhoods. This is a great option if you haven’t already got a specific neighborhood in mind.

Choose the right mortgage

When buying a house, you may be able to save money simply by choosing the right mortgage. If you need to save money upfront, consider looking into low deposit mortgages. Alternatively, if you want to save money on monthly bills, consider looking into high deposit mortgages with smaller monthly installments.

It’s often worth using a mortgage broker to find the best home loan. Check out this guide at Investopedia for more tips on finding the right mortgage.

Build more equity

If you own a home, building up more equity could give you more money to put towards a new home. This is a case where waiting a little longer could be worthwhile.

You may be able to build up equity faster by paying more towards your monthly mortgage repayments. Alternatively, you could look into ways of adding value through renovating (just make sure that the added value is worth the money you spend on improvements).


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