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6 Valuable Tips When You’re Planning To Upsizing Your Home

In order to able to save yourself from the pitfalls of financial burden, you should read on this article to get the most valuable tips when you’re planning to upsizing your home, especially for the people who new on property investment field;

1️⃣️ Never making an impulse decision on property purchase

Since you have a property and plan to sell it off in the future, it is best to make a right and well-thought-of decision before moving out. Normally, upsizing your property is done with the purpose of living there for a period of time and so you should think about something long-term. Is this house suit to your living style or your family? For example, you should not choose to live in the area just because its nearby your kids primary school as your kids will graduated from their primary school after 6 years.

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2️⃣️ Think about something long-term

If you have got promoted or got increased of your salary so you decide to upsize your home? But, we need to tell you that this can be a huge matter since you will take on more debts as you need to pay for a bigger mortgage loan.

Most of the people like to upsize their home or a big budget renovation as soon as they got financially comfortable. In fact, you just make yourself become financially uncomfortable again as you are taking on more debts as well as affect your retirement funds.

3️⃣️ Do check on your housing loan eligibility

Before you go for house hunting, the first thing you need to do is check on your housing loan eligibility. Besides, you should also check your credit report to see whether you have any debts that you aren’t aware about and check whether there is any incorrect information or recorded.

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4️⃣️ ️Never forget your financial status

Different banks will approve your loan at different rates after assessing your financial status. The main thing they will look at is your Debt Services Ratio (DSR), some of the banks will letting you to borrow a large amount of loan and some of the banks just borrow you a little. This is depends on their determined DSR threshold. So, it is advisable to get a pre-approved mortgage loan before your go for house hunting as you will estimate how much loan you can borrow from bank.

5️⃣️ Mind of the entry costs and the miscellaneous

Apply a mortgage loan is consist of entry costs such as stamp duty, legal fees, agent fees, deposit & etc and miscellaneous cost such as renovation, furniture and other existing costs. Before apply a loan with the bank or even decide to buy a house, you should consider whether you have enough savings or cash to pay all of the costs during the process of house purchase.

6️⃣ Never forget to settle your current house first

Once you think your current financial is much more comfortable than before, you will consider to move to a new or bigger house. But firstly, you should settle your current house, sell it or rent it, either one. No matter what decision you have made, you should keep your current house in good condition. It is matter as it will affect the sale value and rental income.

Lastly, remember, once you have decide to upsizing your home, you will need to think something long-term, well-thought-of decision making, check your eligibility and affordability, the entry costs, and settle your current house before it becomes your burden.

Source: WMAPROPERTY

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Mistakes To Avoid When Upsizing Your Home

Do you want to save yourself from the pitfall of extra financial burden? Here are some valuable tips on upsizing your home to do just that.

Making an impulse decision on the property

Since you currently have a home and may be looking to sell it off in future, it’s best to make a right and well-thought out decision before moving out. Upsizing your property is usually done with the intention of living there for quite awhile and so you should think long-term. Will the characteristics of this house suit you and your family? For instance, you shouldn’t stay in an area just because your children are doing primary school there, as they will finish in a maximum term of 6 years.

Disregarding long-term factors

Recently got promoted or got a huge pay rise and so you want to upsize? Well, this can be a big matter since you’ll take on more debt as you pay for a bigger mortgage loan.

As soon as most people get financially comfortable, they start looking at ways they can upsize — like looking at getting a bigger house, a new car, or a big-budget renovation. But these are just ways you can get financially uncomfortable again, because you’re taking on more debt. This leaves you with few opportunities to save for your retirement.

Checking your eligibility

Before you go house hunting on your new dream house, you should check your eligibility with the housing loan eligibility calculator. Other than that, you should check your credit report to see if you might have other debts that you aren’t aware about and check if there’s anything incorrectly recorded.

Forgetting about financing

Various banks will approve your loan at different rates after assessing your financials. Your DSR is the main thing they look at, some banks let you borrow more and some less depending on their determined DSR threshold. It’s best to get a pre-approved mortgage loan.

Costs, costs, costs

Lawyer fees, stamp duty, renovation, agents commission fees, down payment, furniture and the list goes on. Before approaching banks to get a loan, you should consider whether you have enough cash/credit to cover all sorts of costs that will be incurred during the process.

Neglecting your current house

Surely, you’re very excited to move out to your new and bigger home. But what about your current house? You have to decide whether you want to sell or rent it out. Regardless of the choice that you make, it’s best to keep it tidy and preferably in a good state if you decide to sell or rent it out. The condition of your house will matter because it affects the sale value and rent income. Do not spend all your money on your new house and neglect the old one.

Conclusion

Sometimes, it’s easy to get carried away by the hype of getting a bigger/better house. Hopefully these tips can remind you of things that would matter to your decision on upsizing and save you from making costly mistakes that create financial regrets.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive