Downsizing is a pretty common term among those looking for houses. When people reach the stage in their lives where the kids have moved out and they want less home to take care of, they may consider downsizing. On the flip side, upsizing is for those who are looking for more space whether because their family is growing or they just want to have more space to enjoy. If you are thinking about a larger home, here are some things to consider.
The Challenges of Upsizing
If you want a bigger home, you need to be prepared to pay more. Make sure your budget can handle the extra costs. Not only are you likely to pay more for the mortgage, but your utilities and other expenses may be higher as well. And then there are the taxes and insurance which are usually more, too.
When you buy a bigger home, you also must think about the additional work. You may have a bigger yard to mow but at the very least you’ll have more square footage to clean and maintain.
The Benefits of Upsizing
The most obvious benefit of upsizing your home is to have more space. You have room to be more organized and to enjoy hobbies or workspace. You can host parties or invite overnight guests. You’ll have more room for kids or even roommates if you want them.
Another benefit that is not so obvious is the increased wealth you’ll have with a larger home. In many cases, a larger home means a higher value, which provides more equity as you pay down the mortgage.
If you happened to inherit some extra money or gained funds that you wanted to invest, one smart option is to put your money in real estate. A bigger home could be a sound investment for the future when you want cash for retirement and you decide to downsize again. That extra money could allow you to travel or enjoy your newfound freedom.
While upsizing is most often a decision for families, others may find the benefits to purchasing a larger property outweigh the downsides. Just make sure are comfortable with the higher payment and the extra work that often accompanies a larger property.
The Janis Penick Team
RE/MAX Bastrop Area
Serving Bastrop, Cedar Creek and Smithville
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