Friday, July 23, 2010

Upsizing and Downsizing

The most common reasons for moving your family home are upgrading and downgrading.
The first is when you are considering purchasing
a larger and more expensive property because you’re planning to expand your family. If this is your situation, then you’ll naturally want to be close to schools, shops and parks.

For those choosing to upgrade, the longer you delay doing so the harder it will be to keep the purchase price within your budget. This is because the market climbs over time, so it will get progressively more difficult to find the property of choice and the best locality.

By moving sooner as opposed to later, you can achieve a better buy-in price and get the benefit of capital growth.

Then there is the opposite situation where you are looking to downsize. In this scenario your children may have moved to start their own families and you then want to go to a smaller and less expensive situation.

Now the consideration changes. Here it’s to your advantage to delay buying until the market is in a strong growth phase.

By doing so, you can maximise the capital growth on your current property when you go to sell and minimise the mortgage—if there is one—on your next home or even maximise any left-over funds for your use in retirement.

If you have a question about real estate, or would like assistance in locating or selling a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.

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