Thinking about a change of address? Ask yourself these questions first.
Superannuation | 29/05/2017 |
3 min read
Is your home starting to feel a little cramped or outdated? Perhaps you’re sick of the morning commute to work or you’re thinking about starting a family?
If you’ve been contemplating a change of scenery we’ve prepared a 7-point checklist to help make the transition as easy as possible.
1. Is moving the right decision for you?
If you love your suburb and home but your circumstances have changed, it’s worth weighing up the pros and cons of renovating versus relocating. Renovating can be a cost effective way to expand or upgrade your property, and you’ll save a small fortune on stamp duty and agents fees. Granted, it’s not as exciting as a new home, but it can be a better option.
2. Sell first or buy first?
If you do decide to relocate, timing can be critical. That means managing the transition from one property to another, and figuring out if you want to sell your existing home before purchasing another. There’s no right or wrong answer, but there are practical and financial issues to consider.
3. Get to know your borrowing power
If you’re already in the property market you won’t be eligible for any first home buyer incentives, but you will have home equity, and that can boost your buying power. Speaking with your bank or lending institution will take the guesswork out of the equation, and allow you to set a budget.
4. Choose a location
Your new postcode will influence how much you pay for your new home, your quality of life, and the sort of capital growth your next home is likely to notch up over time. That makes it worth investing serious thought into where you plan to live. Whether it’s a particular suburb, area, or school catchment, your postcode can have long lasting consequences.
5. Decide on the style of home that fits your needs
The type of dwelling best suited to your circumstances will depend on your budget and lifestyle. An apartment can offer the convenience of low maintenance living, while a spacious suburban family home can be a great place to raise children. Or you may prefer the character of a heritage home over a brand new master-built dwelling. Assess what you like and dislike in your current home and note the essentials – like the number of bedrooms and bathrooms you need – to compile a shortlist.
6. Maximise the sale value of your current home
Major renovations are not always a good idea at this stage, as a new buyer is likely to want to stamp their own mark on the property. However, low cost improvements like tidying up the garden to create curb appeal, decluttering the interior and giving the place a fresh coat of paint can add value and market appeal to the property. If your budget allows it, hire a stylist for expert advice on how to present your home in the best possible light.
7. Review your home loan strategy
Upgrading to your next home is an ideal time to shop around for a great home loan deal. Ensure your new home loan has the right features (and rate) for your circumstances. After all, you need to be just as comfortable with your new loan as you are in your new home.
Originally published by Members Equity Bank Limited ABN 56 070 887 679.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the relevant Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Issued by Equipsuper Pty Ltd ABN 64 006 964 049 AFSL 246383.