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Upsizing or Downsizing your Home
Buying your next Home
As a current homeowner, you know more about buying a home than when you purchased your first one. This time, you probably have a better idea of what you want. Whether you are moving to a bigger or smaller home, you likely have more buying power than before!
H2: Selling First vs. Buying First
When you sell your current home before buying a new one, you’ll know exactly how much money you have for your next purchase.
However, you may need temporary accommodation if you don’t find your new home quickly.
Buying your first home has more risk. You might not sell your current home for as much as expected, potentially leaving you needing a larger loan—if the lender even approves it.
However, it allows you to move directly from one home to the next, avoiding the stress of selling before securing a new place. This is especially useful when it’s easier to sell than find a new property.
H2: Benefits of Upsizing and Downsizing
These are some important pros of upsizing and downsizing
H3: Benefits of Upsizing
- The Federal Government’s HomeBuilder grant offers owner-occupiers $25,000 to build a new home or renovate an existing one.
- If you can rent out your current home as an investment property, it can provide a source of income to help with your new home’s mortgage.
- Upsizing provides you more space to de-clutter, entertain guests, and accommodate a growing family, offering everyone more room to enjoy.
H3: Benefits of Downsizing
- While downsizing, there will be no more rooms, and backyards and gardens will also be small. That means there is less work to do, so you have enough time to enjoy your favorite activities.
- Downsizing also helps you save money, including on insurance, utilities, and maintenance. This liberates cash for things you enjoy, like travel or new hobbies.
- Downsizing can bring you closer to friends and family, place you in a supportive retirement community, or offer greater access to amenities like public transport and entertainment hubs.
H2: Home loans for Next Home Buyers
When you’re looking to buy your next home, it’s easy to focus on the cost and features of the new property. However, an important decision is whether to sell your current home before purchasing the next one.
The type of loan you need depends on how you proceed—whether it’s a standard home loan or bridging finance.
Bridging loans are not very common. Only a few lenders offer them, but they have strict terms. They usually lend less money than regular home loans and may have higher interest rates. Also, the time needed to get a bridging loan is often limited.
Contact us today to help you analyze whether bridging finance is an option for you and what the bank’s requirements would be.