Is it time to get a bigger house?

Is it time to get a bigger house?

August 29, 2017 | by DiJones

Have you decided to have another child, your first child, perhaps? Or are your kids getting too big for that two-bedroom apartment? Maybe you and your partner just want more room to move, or a garden, and the time is right to capitalize on the improvements you’ve made to your first property.

If room for a backyard, strong transport links, access to some of the country's best schools and tranquil surrounds come into the picture, the the upper north shore – renowned for its ease of living and picturesque streets – should be high on your radar.

Understand your limits

There are many reasons for upsizing. But the best time to move largely depends on your financial position – will you be able to meet the increased mortgage repayments of a larger house? Will you be selling your existing property, or holding onto it as an investment? The timing of your buy and sell process will also play an important part in this – but we’ll get to that later.

List what you want from a home

First things first: Do you want a new build or a renovated period home? The upper north shore is home to a wide range of architecture, so you’ll undoubtedly find what you’re looking for, but narrowing down your architectural preferences will help isolate certain suburbs.

And then there’s practicalities: do you mind driving to the train station or need a property within walking distance? Shortlisting other preferences such as number of bedrooms, bathrooms and yard size should have you well on your way to creating an inspection shortlist.

Timing the market

There was once a time where Sydney’s property markets – such as the lower and upper north shore – operated independently from one another, and timing your sales and purchases to reflect this could pay dividends. More recently the upper and lower north shore operate largely in sync, but it still helps to understand the advantages and disadvantages of buying or selling first.

Why you should buy first

Don’t get caught out by a hot market

The north shore market has been booming, there's no denying it. While that’s great in terms of the price you will receive for your property, it does mean that you risk being caught out by rapidly rising values if you choose to sell first. With annual prices rises in the double digits, there is a very real possibility that if you sell first you run the risk of values moving outside your price bracket within a month or two of your house hunt. If this happens, you may be forced to reassess the area in which you are able to buy, and compromise on the type of property you like.

No half-way house

If you buy first, there’s every chance you will be able to coordinate your move into a new house to coincide with the settlement date for your existing property. If you sell first, and your new home hunt takes longer than anticipated, you may find yourself having to seek alternative accommodation to bridge the gap. This can be an inconvenient or expensive option.

Finding ‘the one’

A home purchase is among one of life’s biggest decisions, and one you don’t want to rush. This is particularly true if your decision to upgrade is driven by a major life event – like starting or expanding a family. It’s important you take your time and get it right instead of being forced to compromise by a looming deadline.

Why you should sell first

Knowing where you stand

There’s nothing better than heading into a deal knowing where you stand – which is something you can do when you know how much your old property has sold for. It also helps with pre-approval for a loan: if your lender knows how much you have made from the sale of your home, as opposed to a hypothetical figure, securing finance for your new purchase will be much easier. If you know how much you have to spend, you can also target and refine your property hunt to those suburbs and properties that fit the bill.

Nobody wants two mortgages at once

When you sell first you avoid the risk of being stuck paying the mortgage repayments on both your new and old property at the same time, unless you can sell your old home at short notice.

Seek expert advice

As always, it helps to get a professional perspective on your situation before you decide whether to buy or sell first. Speak to our team about which strategy would suit you best in the current market.

DiJones Real Estate, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.
This information is provided subject to our Terms and Conditions.