Buying a home can be easier the second time around, as you know what to expect. However, if you are selling your current home at the same time there are few extra steps you need to consider.
Steps to buying your next home
Consider the reasons you’re moving and the features you’re looking for in your next home. You may need more space for a growing family or want to downsize to better suit your lifestyle. Many people buy a new home to move closer to their family, job or great schools.
If you’re happy with the location of your current home, you may like to consider renovating your home as an alternative.
Equity is the difference between the market value of your property and the amount you still owe on your home loan. If you’ve made extra mortgage repayments over the years or your property has increased in value, you may be able to access the equity in your current home and use it as a deposit for your next home. You can also use this property as security for the home loan on your next property.
If you bought your first home a while ago, there may be additional costs that you haven’t considered, or selling costs that you haven’t had to deal with before. These may include bridging finance, Stamp Duty, real estate agent’s fees and moving costs. Understanding what it will cost to buy your next home will help you stay on top of your finances every step of the way.
Buying your next home should help you achieve your financial goals, as well as give you the lifestyle benefits you’re looking for. Once you know how much equity you have in your current home and the costs involved in buying a new home, use our calculators to work out how much you can borrow and what your repayments will be.Next article: What can I afford?