Upgrading to a new home is an exciting step, whether you’re looking for more space, a better location, or a modern lifestyle upgrade. However, it’s important to be prepared—both financially and logistically—to ensure a seamless transition. Here are three key tips to help you navigate the home upgrading process with confidence.
1. Know Your Financial Position
Before you start searching for your dream home, it’s essential to understand your financial standing. Here’s what you need to assess:
Your home equity is the difference between your home’s current market value and the remaining mortgage balance. The more equity you have, the more flexibility you’ll have when upgrading. Get a professional property valuation or speak to a real estate agent to understand how much your home is worth in the current market.
Your financial situation may have changed since you last applied for a mortgage. Lenders will assess your income, credit history, and existing debts to determine how much you can borrow. Getting a pre-approval will give you a clear price range for your next home and make you a more attractive buyer to sellers.
Upgrading involves more than just the purchase price. Be sure to factor in:
- Stamp duty – This varies by state and can be a significant cost.
- Legal and conveyancing fees – Required for both selling and buying.
- Moving costs – Removalists, temporary storage, and utility connections.
- Potential renovations – Your new home may need some updates.
2. Sell or Buy First?
One of the biggest decisions for home upgraders is whether to sell their current home before buying a new one. Each option has its pros and cons:
Option A: Sell First
- You’ll know exactly how much money you have to put towards your next home.
- Avoids the risk of having two mortgages at once.
- Less pressure to sell quickly, allowing for better negotiation.
- You may need temporary accommodation if you don’t find a new home in time.
- The property market could change while you search for a new home.
Option B: Buy First
💡 Solution? If you’re unsure, consider including a “subject to sale” clause in your offer, meaning the purchase will only proceed once your current home sells. Alternatively, bridging loans can help finance the gap if you need to buy before selling. We often help clients with solutions when they’re faced with this challenge.
3. Plan for the Transition 📦
Once you’ve decided on your financial approach and buying/selling strategy, it’s time to plan the logistics of your move. Here are some key considerations:
a) Timing & Settlement Coordination
Work with your real estate agent and conveyancer to align settlement dates between your old and new home.
If there’s a gap between selling and moving into your new place, arrange for temporary housing or a rental property.
b) Organizing the Move
Start decluttering early to reduce the number of items you need to move.
Get quotes from removalists and book services well in advance.
Notify utility providers, banks, and other services about your address change. Ask us about our Home Now service.
c) Emotional Readiness & Family Considerations
Moving can be stressful, especially for kids or elderly family members. Prepare them for the change.
If upgrading to a different area, research schools, healthcare, and community amenities.
Final Thoughts: Upgrade with Confidence!
Upgrading your home is a significant milestone, but with careful financial planning, a smart buying/selling strategy, and a well-thought-out moving plan, you can transition smoothly into your next home.
💡 Thinking about upgrading? You can book online to have a free chat with one of our brokers at a time that suits you.
