Four questions to ask before upgrading

WHETHER you’re ready for kids (or your eldest have just moved out), buying a bigger place could give you all the space and freedom you need.

castran gilbert

WHETHER you’re ready for kids (or your eldest have just moved out), buying a bigger place could give you all the space and freedom you need.

While you and your partner have lived comfortably in a two-bedroom apartment for the last few years, you’re both starting to consider your next move. A shift in life stage may have prompted the restless legs, leaving you to make your next big purchase. While your friends and family are encouraging you to downsize your home, you’re both after a place with more space to fill with pets, kids, grandkids, or for the empty nesters, luxe furniture without the grubby handprints. Before making the move, our industry experts believe there to be four, firm questions to ask yourself. From being aware of hidden costs to checking in with yourself and your partner, here are four things to consider before upgrading.

WILL THE FLOOR PLAN WORK FOR ME IN FUTURE YEARS?

Sure, the big, heavy wall dividing the kitchen and living room works for now, but what about when you want to open up the space? Jess Viscarde, Director of Eclectic Creative, says it’s important to be realistic about the floor plan and layout of your potential new home before purchasing. “Ask yourself, does it work for now? Will it work in future years? Does it have potential to be changed or altered easily?” Jess says. “Try to look past things such as exciting flooring or paint colours as these are relatively budget-friendly aesthetic changes you can make upon moving in, to immediately update and transform the space.

“Wet areas such as bathrooms and kitchens will require more of a considerable renovation budget should you wish to upgrade, but again, paying attention to these areas’ layouts is beneficial to the end goal. Retaining the existing plumbing locations saves money during renovation, and, if cabinetry is still in good condition, these can be resprayed. Obviously replanning, redesigning and a complete overhaul of these areas will cost money, but it’s all about considering your budget and weighing up the pros, cons and potential of a property.”

IF I UPGRADE, DOES THE PLACE NEED TO BE BIGGER?

When upgrading, the experts say, you should look for size. “Apartments can be renovated and updated quite easily, but one thing you can’t do with an apartment, is improve its size,” Michael Lang, Director at Castran Gilbert says. “Unlike houses, where you can add an extension, your four walls of an apartment are set, so when upgrading, best you look for size first.”

In addition, Michael believes your location is important, especially if you have kids in school.

“The benefits of being close are endless,” Michael adds. “One of the best benefits is the time you’ll be able to spend walking with your kids to school just to have that interaction about their day,” Michael adds. “It’s priceless and adds to your quality of life.”

DO THE NUMBERS STACK UP?

No big financial decisions should be made without knowing your numbers. According to Corey Wastle, Founder and Financial Advisor at Verse Wealth, it’s important to have control of your cash flow and know what you can afford. “Upgrading will mean a larger mortgage and chunkier repayments, that might cause you financial stress and limit your freedom,” Corey says. “Just because a lender will give you a certain size loan, doesn't mean it’s wise to take up 100 per cent of the offer.

“When you’re working out what you can afford, forget the current interest rates as record low rates aren’t going to be here forever. You should be factoring in a ‘stress test’ by knowing what your repayments will be if interest rates jump up two per cent. If this scenario makes you nervous, you might be best to wait.”

Corey also adds, that it’s not just the repayments that rise. “When you have a bigger place, your property taxes go up as do your utility and maintenance costs. To take control of your cash flow and have the clarity needed to make big decisions with confidence like upgrading the home, I recommend automating your cash flow into different buckets so that your spending across lifestyle, bills and goals is consistent and predictable, as is your savings rate.”

HOW CAN I MAKE A BIGGER HOUSE, A HOME?

While many associate small, cosy abodes to be more homely, Registered Psychologist Rachel Hard, says that’s not always the case. “People are often so attached to those memories that have been created in their old house, they might feel distressed or anxious at the thought of moving,” Rachel says. ‘It’s important to remember that these are memories that can ‘move house’ and come with you.

“So, try to refocus on the potential and think about the fresh start. A new house is an exciting opportunity to make new memories. Think about the reasons behind why you chose to move and focus on developing new routines, planning events, filling your home with reminders, such as photos and momentos, to start building new memories.”