Summer is certainly upon us and the idea of spending lots of time outside, having a bright interior and hosting BBQs for friends and family is exciting. Although, if you’re lacking in space it can lead us to the inevitable conclusion that we need more space…
The thought of looking for a new home with more space to live and grow in often worries people when thinking about how much it will cost them to take on a bigger property and, ultimately, whether the benefits outweigh this. While there is an unsurprisingly inevitable higher cost when beginning the upsizing journey, it really can make a massive difference to you and your family’s lives.
Plus, there are many reasons why now is a great time to make the upsize. Our Director, Shaun Stevens covers them in his video below.
You might be hesitant of making the move because you’re waiting to see what happens in the property market or you’re holding off selling until you can get the most for your current property. These are the two most common reasons we hear.
However, the reality of it is, if your property’s value has gone up, so has the value of the property you want to buy but the value increase for the property you want to buy has probably increased more than your property has.
Let’s look at an example… Property A is valued at £400,000 and Property B is valued at £600,000. Over the course of 2 years, both properties increase in value by 15% (let’s be optimistic about the market). If you live in Property A and wait for 2 years, your property will increase in value to £460,000 – an extra £60,000 in equity, doesn’t that sound great?
However, Property B will have increased in value to £690,000 - £90,000 equity sounds even better, doesn’t it?
So if you sell Property A to buy Property B in 2 years’ time, despite your property’s value rising by £60,000, it will cost you £230,000 to buy Property B. However, if you purchase Property B now, it will only cost you £200,000 and rather than enjoying £60,000 equity increase, you’ll have £90,000! This means waiting for 2 years before buying Property B has effectively left you £30,000 worse off.
Please keep in mind that this is a model and it all depends on your particular circumstances. It’s highly possible, that you’re better off waiting for the two years. Without speaking with you and knowing your situation, we couldn’t advise on what’s best for you. So, if you’re considering moving or would like to know your options, please get in touch today.
The first step is to find out what your property is worth in today’s market, which you can do by clicking here to request a free property valuation online.