So, you already have a house but it’s not right for your current circumstances and you have decided to look for a house upgrade. 

House Upgrade

Maybe you need a bigger house as the kids are getting too big, or you want to start a family.  Maybe the kids have moved on so you need a smaller house.

You may have some questions about if you should keep your existing property as a rental property towards your retirement or if it’s better just to sell it and get a house upgrade. If you decide to sell it, then you will have some decisions to make and questions to answer:

If you sell your current house before you buy the new one, where will you live?

Can you coordinate it so you buy and sell on the same day?

If you buy the house upgrade before you sell the current one, can you afford both?  What conditions will the lender have?

Where will your deposit come from?  If you have all your savings or deposit wrapped up in equity in your home, how will you pay the deposit to the vendor of your new home?  What will the cost of borrowing the money short-term be?

If you are renting the property, you will have the same question over the deposit, but will also need to work out what the property will rent for, should you manage it yourself, or should you use a property manager?  Is it a good investment?  Does it fit your retirement plan?  Can you afford the larger mortgage on both properties?  What are your tax obligations and benefits?

So, while it might seem like upgrading is straightforward as you have done this before, there are a lot of questions that need to be answered, and a lot of advice you may be able to use.

The DUX Financial Homebuyers plan works in this situation as well.

The stages of a house upgrade may look like:

  1. Work out what you want to do, the costs, your budget, should you rent or sell the current house, what can you borrow and any other questions that need answering.
  2. Get your finances pre-approved.
  3. Recommend the right mortgage professionals, e.g. lawyer, consultant, property manager, accountant.
  4. Start looking for a new house and list your existing house if you are selling.
  5. Help you make an offer on the new property, and advise on the impact of the price you are offered on the current house.
  6. Once the purchase on the new home is finalised (and sale on the current house if applicable), present a report with full funding recommendations, structure, insurances, etc.
  7. Provide ongoing advice to help you pay the loan off faster.

So if any of this looks like it could be useful to you, get in touch.

House Upgrade