Does Moving Up Make Sense?

Real Estate

Whether your family size is growing, you are running out of space or simply want to seize the opportunity to "move-up" to your next home, below are a few questions to consider as you weigh your options.

1. Have you built substantial equity in your current home? Home equity can be defined as the value of a home, minus the amount of outstanding debt. Although equity does not generally develop in the first few years of home ownership, five or more years of home payments may create significant unrealized gains.

2. Has your income or financial situation improved? Homeowners should consider their overall financial situation including current and future expenses in order to make an educated decision on price range for a new home. For example, an increase in salary may allow for an increased mortgage.

3. Has your lifestyle changed? Lifestyle changes are one of the most common reasons people choose to move. Starting or adding to a family may require an extra bedroom or additional square footage, as well as a desire to live closer to work or family may provide the impetus for a move to a larger home.

4. Is your current residence one that could potentially be rented out? For those homeowners who are ready to make a move but are concerned about purchasing a new home before the current property is sold, renting out the current residence may be a viable option.

5. Are interest rates attractive? A low interest rate means lower mortgage payments on homes of the same price. I'd be happy to refer you to a mortgage advisor should you need to check on interest rates.

If you want to discuss any of the questions above or have more to ask, don't hesitate to give me a call.