There are many reasons you might want to move home. You might have just received the exciting news that you’re expecting. Maybe the darling of the family just moved out of home and it feels empty. Or perhaps you want to reduce your daily commute time but need some extra cash to afford to live closer to where you work.
Here are a few reasons you may choose to move house – and how a mortgage broker can help you manage it.
1. Downsizing to a smaller home
One of the most common reasons for older Australians to move house, according to the Australian Bureau of Statistics (ABS), is to downsize to a smaller property. Many empty nesters choose this option once their children have left home. Without kids coming and going, houses can seem too big. Selling your home can unlock a lot of equity, and if the next home you purchase is significantly cheaper, you might have more money to put towards your retirement.
However, it’s important that downsizing doesn’t end up costing you more money than staying put. There are many costs involved in moving home that need to be factored in, and a broker can help you navigate them all.
2. Upsizing to a larger home
ABS data indicates that Australians living with partners are the demographic most likely to move in order to upsize. This is because as your family grows, your living space needs to adjust, most likely because you’re expanding your family by having kids and may require a house with additional bedrooms and larger living areas.
Upsizing can lead to a larger mortgage, so it’s important to calculate what you can afford and use a mortgage broker to help you find a competitive home loan that’s within your budget.
3. Turning your current house into an investment property
You might want to rent out the place you’re currently in instead of selling it; for example, if you want to live closer to your place of work. You can rent out your house in the suburbs and use the money to put towards living in a city apartment – something known as “rentvesting”. Or if you have the finances, you may even choose to take out a second home loan.
Rentvesting may involve refinancing your existing home loan to make sure you have all the flexibility you need. A mortgage broker can walk you through your options.
Your Smartline Adviser compares loans from many different lenders to find you one that suits your needs and budget. Call your Smartline Adviser today!