Need More Space?
You might need a BIGGER house if you are living in cramped quarters, you have got the extra money and your family is growing. Or simply, it could be you need a home office, want an exercise room or a larger master bathroom, your kids are coming back home after college or it is finally time to get that theater room you have always wanted!
Without taking into account how much stuff each family member has, determining square footage may seem like a mathematical formula that does not exist. It can become more confusing when one also considers that sometimes it is not just the square footage that you get in a house, but the way you live inside that really matters.
The first step is to think about your current living situation. Think about which rooms you spend the most time working, playing and living in. Think about which hobbies you have and how much room is needed to comfortably engage in them. Consider these variables for each family member.
The second step is to think futuristically about each person in your family. Maybe there are space needs that your family will need in the very near future. For example, small children sharing a room will shortly want to branch into their own space if at all possible. Also, be mindful that couples who have consolidated their lives often miss having their own room. See if you can find a home that has enough diversity so that each person has the best fit for their needs.
When the critical decision is made to buy a bigger house, some number-crunching is in order. You need to estimate the following:
- The balance of the first mortgage
- The interest rates in effect
- Whether or not you will use an home equity line of credit against your first house or go for a straightforward home loan
- What your plans are for the first house: sell it or rent it out If you sell it, how much will be left after the mortgage balance is paid off. If you choose to rent it out, can the monthly rental income carry all or a portion of your mortgage?
- How much will the second house cost? Does it have good resale potential?
- How much will your payments for utilities, taxes, and maintenance increase per month?
- Is the purchase of the second property contingent on the sale of the first property?
If you are considering moving into a larger home, Modern Property Groups would like to help you get started.
Contact Us for a free comparative market report on your current home.