After buying a home, your needs and desires may change years later. The home you purchased five or ten years ago may no longer be suitable for you and your family. So, what are some common reasons that many people choose to upgrade and buy a bigger home?
1.) Your family is growing
One of the most common reasons people choose to upgrade to a larger home is their growing family! If you have a baby on the way or your in-laws are moving into your home, you may need more bedrooms, bathrooms, or space in general to accommodate those needs.
2.) Your lifestyle has changed
Typically, suburban homes are more spacious than apartments in the city. Maybe you no longer want to live in a smaller apartment in the heart of town and would like to move to a quieter area that offers extra space. Think about your lifestyle needs for the next few years and create a wants vs. needs list!
3.) Your financial position has improved
You may love your space but have the means to upgrade to a larger home because of a recent promotion or raise! Earning more money or having more assets may allow you to qualify for a larger loan. If you’re comfortable where you are, you may want to consider using extra savings for a down payment on an investment property to help you earn additional passive income.
4.) You are working from home
Over the last two years, more and more people have transitioned to permanent remote working or a hybrid work schedule. Some companies will allow their employees to continue working from home, which may increase the demand for home office spaces. A larger home with an extra bedroom may be better for you so you can convert it into a home office.
5.) You need more space for a hobby
You may have recently taken on a new hobby or skill, such as painting, gardening, or cooking. Your home should adapt to your changing needs and interests, so eventually, you may need a house with a larger kitchen, an outdoor lawn, or a garage.
How to Afford a Bigger House
The decision to upgrade to a larger home depends solely on your personal and financial needs. Rates remain at low levels, so you may be surprised how much house you can afford for your next purchase. Additionally, average home values have increased substantially, so you may be able to leverage the equity in your current home to take cash out for a down payment on a new purchase.
Get in touch with one of our mortgage specialists to explore your financing opportunities.