5 Tips For Upgrading To A Bigger Home

Your first home purchase might have been perfect for you and your partner. Its size is just right, it is easy to maintain, and fits your budget. But as your family grows bigger, you eventually realize that you need a bigger space. You slowly identify the things that you want and need in your home – a bigger kitchen, additional bedrooms, bigger yard, etc. Upgrading to a bigger home suddenly becomes an essential task that you won’t be able to ignore.

But before you go ahead and upgrade your home, these tips for upgrading to a bigger home can surely help make your upsizing journey easier:

1. Identify your objective.

Upsizing your home is nice but what exactly is your objective for buying a bigger home? It is most probably because you want more space but have you thought about why you want to have a bigger space? Pin down specific reasons why you want a bigger home. Having a criteria will make it easier for you to assess your options when actually looking for a new home.

Determining what you are looking for in a bigger home will keep you on track and ensure that you are making a correct purchase. Think about what you wish to change in your current home. Do you need more bedrooms for your growing family? Do you want a larger yard for the kids to play in or for hosting backyard dinner?

2. Assess your finances.

Once you’ve identified your reasons for upgrading to a bigger home, determine if you are financially-capable of covering its long-term costs. A bigger home doesn’t just mean higher purchase price. It also entails higher property taxes, higher utility fees, and requires more maintenance. A lot of space also means that you need to acquire more furniture.

Aside from a higher monthly mortgage rate, furnishing your big home, utility and maintenance expenses are the additional costs that are often overlooked when upgrading to a bigger home. Keep in mind that the purchase price isn’t the only thing that you need to consider when buying a bigger home, the monthly payment and all the associated costs are bigger liabilities.

3. Consider the resale value.

Are you thinking of purchasing a bigger home and making it your forever home? Think again. A big home might feel too much once the people in your home start to move out. Your children will eventually move to their own homes to build their own families. With this, you would probably consider downsizing and selling your big home in the future.

With your home upgrade, consider the possible resale value of your new home. Do your research about what home buyers want. You are not just buying for the sake of staying in a bigger home but you should also consider the possibility of reselling. Choose the type of home and its location wisely.

4. Decide if you are willing to move to a different neighborhood. 

Bigger houses are usually located in farther locations, those that are away from the city. Most properties in the city are perfect as starter homes as they are smaller, close to the city, and are accessible through public transportations. Although bigger homes are located farther from the city, in some cases, its price is almost the same with smaller houses in the city. If you are able to find a great deal, you could probably get a bigger space without spending too much. Will you be willing to have an additional 20- to 30-minute travel time to the city? Assess the pros and cons of moving to a different location.

5. Consult the right people.

Aside from following these tips for upgrading to a bigger home, make sure to consult the right people. Although this is not your first time purchasing a home, upgrading to a bigger home can also be overwhelming. Like your first home buying journey, it is also best to have someone who will guide you throughout the process.

Good thing you have the experts at Buying Perth Real Estate. Our experienced buyer’s agents can definitely help you find the perfect deal for your home upgrade. Feel free to give us a call at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

Hidden Costs Homebuyers Should Watch Out For

When buying a house, there are more expenses to save up for than just the deposit. Many first-time homebuyers often end up surprised at how much more it costs to buy a property than it seems because they did not get to prepare for these hidden costs.

Hidden costs homebuyers pay can definitely take a swipe at your bank account if you don’t watch out for them. Expenses like stamp duty, transfer, and conveyancing costs, insurance, building and termite inspection, and other fees can be costly. While some of these fees can be prepared for, other fees are upfront and cannot be refunded even if your property purchase does not push through.

1. Pest and Building Inspection

Checking your home for pests and for any hidden structural damages is essential when buying a property, especially for older homes. While hiring a professional home inspector can cost you around $300-$600, this is definitely money well spent because it gives you an assurance of the quality of the property you bought.

hidden costs homebuyers stamp duty

2. Stamp Duty and Other Government Fees

Stamp duty is the tax you pay when you purchase a home. Depending on the value of your property, stamp duty can cost thousands of dollars. For example, stamp duty on a home purchase of $650,000 is $24,890 if it’s for your home and a little more if it’s an investment. Stamp duty is paid at settlement. 

However, some states like Western Australia waive the stamp duty for first-time homebuyers. You’ll only need to pay other government charges such as mortgage registration and transfer fees which can definitely help you save a lot of money. 

3. Conveyancing Costs

Having enough money for a down payment is not enough when purchasing a home. You also need to prepare for the settlement costs. Conveyancing costs include various costs that are necessary when settling a property deal. Some of these are as follows: document fees, title cost, mortgage application, etc.

Ask your buyer’s agent about these fees and make sure that everything is understood so you know how much you need to save up and to save you from unpleasant surprises.

hidden fees homebuyers of home repair

4. Home Maintenance and Repair

Although your new home passed the pest and building inspection, you still need to prepare in case there are any repairs needed. Once you move in, there can still be things in the house that needs to be removed or replaced such as door locks and old or faulty fixtures. You might change a few things on the property such as adding a fresh coat of paint, installing a new water heater, changing the garden landscaping, etc.

Yearly maintenance fees can be a cost that many don’t prepare for so it’s best to save up that amount in case any unexpected repair costs come up.

5. Homeowner’s Insurance

Buying a home is an investment. Since you will be spending a big amount of money on this, it is necessary to protect your investment. You can do this by getting homeowner’s insurance. This is especially important if the location of your new home is prone to natural disasters. Getting a homeowner’s insurance might seem like an additional cost when buying a home but you will find it absolutely essential in case something happens to your home.

woman with a key to her new home

6. Moving Costs

Your expenses when buying a home don’t end with the actual fees that you need to pay upon purchasing a home. Finally settling the deal is an accomplishment after the long buying journey but the journey doesn’t end there. You still need to take care of moving into your new home and this entails additional expenses. 

You’ll need to rent a moving van plus purchase necessary moving tools such as boxes and packing supplies. Include this in your home buying costs so you’ll be able to manage your finances accordingly.

It’s best to be prepared for these hidden costs homebuyers pay for when buying a property. Make sure that you include these fees when deciding to buy a house and saving up money for a deposit. Prepare early so that you can avoid straining your finances.

When buying a home, don’t hesitate to ask your buyer’s agents about these fees. Get a free consultation with Clive and the experts at Buying Perth Real Estate. Our experienced buyer’s agents will make sure that these costs won’t be hidden from you as we guide you through your home buying journey. Send an email to clive@buyingperthrealestate.com or call us at 08 6215 0200.

Why You Should Invest In Developing Areas

Have you been thinking about why you should invest in developing areas? When buying a home, one of the most important things that you should consider is the location of the property. In fact, location is key when it comes to investing in real estate. A property’s features and condition can also be changed and improved, but you can’t change its location.

While most people would prefer to live in the city centre, properties in this area are usually limited and more expensive. Consider buying a property in places where there are plans for future development. Upcoming city centres are cheaper, but with developments in place, their prices are sure to increase in a few years. When you invest in developing areas, you are definitely making the right long-term choice.

Here are some reasons why you should invest in developing areas:

a lot of available land and space

Land availability

Unlike developed areas, locations that are still under development have more lands that are still available as a big portion of the area is yet to be developed. With this, you will be able to have more options and have the chance to choose the best lot available.

However, though this would seem to be an advantage for a buyer, you should still do your research about the location. If a big portion of land is still available for quite a while, it can be a sign of low demand. If it stays this way for a longer period of time, it can affect the future value of your home. 

It is best to check with your buyer’s agents as they are more knowledgeable and they have the connections and means to gather necessary information about your target location.

invest in developing areas to grow money

You can invest at a lower price point

Since the demand for property is lower for developing areas, you can buy them at a lower rate compared to those in highly developed areas. There tend to be fewer buyers and more supply since the value of this area has not been recognized yet. Once the area starts to develop, however, the demand will push the prices of the properties up.

a building being constructed

Upcoming infrastructure

Another advantage of investing in developing areas is the upcoming infrastructure. Once the area has developed essential establishments within the community, the value of your property will increase. The nearby infrastructure is crucial to the potential growth of your investment; hence, you should ensure that the area you are planning to invest in has a reliable and financial developer and a progressive local government authority,  who will take care of the infrastructure development. If the development is delayed, it can affect the timeline of your investment growth.

Developing areas are great investments as prices tend to appreciate faster because of surging demand. However, when buying a property you must also consider accessibility, appearance of the property, and amenities of the neighbourhood.

Consult with an experienced buyer’s agent before making any decision. Get well-researched market insights, exclusive listings, and more when you hire a buyer’s agent at Buying Perth Real Estate.

How To Build Wealth Through Property Investment

Have you ever realized that no matter how good your salary is, it doesn’t seem to be enough for you to achieve financial security? Achieving financial security and growing wealth through an average salary can be a big challenge, especially if you have many bills to pay. However, you don’t have to limit yourself with your salary alone because you can build wealth by having a property investment.

Having property investments is one of the most secure and safest ways to build wealth especially if you have long-term goals. Here are some reasons why you should consider investing in properties:

Why Invest in Properties

Property investment is safer and more stable than investing in a business or in any share. Real estate is bound to rise long-term because the supply of land is limited and will always be lower than the demand for it. Property investment is safe enough that governments and banks have created programs for people to be able to buy properties of their own. Everyone needs to live in a house either by buying or renting.

You might think that the only way to earn from your property is by selling it after several years, however, you can actually start earning once you buy a property. 

Ways to Build Wealth Through Property Investment

To give you an idea, here are some ways on how to build wealth through property:

Capital Growth

Once you’ve purchased a property, you wouldn’t immediately gain profit from it. You might actually spend money at first to pay off your mortgage, depending on your approved loan. On a positive note, you can eventually gain profit from your property because of its increasing value. Over time, real estate value increases; hence, your property wealth increases as well. This is similar to the idea of buying at a low price and selling for a higher price.

Aside from the increase of real estate value over time, another way to create capital growth is by doing renovations and upgrades to increase the value of your property. By doing this, you wouldn’t need to wait for a longer time for your property value to grow as you get to do something to increase its value and don’t need to rely on property appreciation.

Buying Direct Property

One of the best ways to invest in property is by buying a direct property. A direct property means owning a residential property 100% under your name. When you have control over your property, you can do what you think can get you the best return on your investment.

You can choose to live on the property and let its value grow. You can choose to get tenants or furnish it to have it rented as an Airbnb. Getting a mortgage is another option if you need to get cash immediately. 

It’s also important that you buy a good property that can last for years. Buying then selling properties to upgrade constantly can be costly in terms of fees and taxes. Experienced buyer’s agents can help you get a good quality home that would fit your lifestyle and needs.

Invest in Properties to Achieve Financial Security

Having financial security is important because it lets you live your life freely. You become at peace by knowing that you are secured and you have enough finances for your needs, emergencies, recreation, or for other purposes. 

With its fast recovery from the pandemic and its developing economy, Perth is one of the best places to build property wealth. To learn more about building wealth through Perth real estate, the buyer’s agents of Buying Perth Real Estate are more than willing to discuss with you. Call us at 08 6215 0200 or send an email to clive@buyingperthrealestate.com 

Why Real Estate Is A Great Investment

More and more people are starting to explore different ways to build their wealth. Aside from having multiple income streams, having an investment is a faster way to build wealth. There are various options when it comes to investing, but having a real estate investment still remains one of the best investments that a person could make.

Here are some reasons on why real estate is a great investment:

The real estate market is less volatile.

Unlike investing in high-risk and high-return markets such as stocks and cryptocurrency, the real estate market is less volatile and less vulnerable to sudden price fluctuations. Of course, these markets have their own advantages such as accessibility and liquidity, but if you are looking for a long-term investment that you don’t need to monitor on a regular basis, real estate might be a better option for you.

real estate prices tend to go up

Its value always increases over time.

Although prices tend to fluctuate every now and then, real estate price values always increase over time. By putting time in the market, you will get a higher value for your investment than selling it sooner. 

It has a high tangible asset value.

Unlike investing in the stock market where your money is used to buy shares from a company, you can physically use your real estate investment. You can build on it, renovate it, live in it, or rent it out. By making improvements and maintaining it, you can increase your real estate property’s value. You can even earn more from it by having it rented.

real estate investment

It can increase your cash flow.

Investing in a property is a great way to increase your cash flow. Once you’ve already finished paying off your mortgage and operating expenses, you can gain profit through rental. Rental properties provide a regular, steady, and passive income. This makes it a great way to generate additional income and grow your money. 

Another way to make profit in real estate is by buying it at a low price and selling it at a higher price. Aside from the increasing value of real estate over time, you can gain more profit by building equity.

It can diversify your portfolio.

If you aren’t new with investments, you surely know about the importance of portfolio diversification. Diversifying your portfolio will help you spread out possible risks. Since real estate is a safe tangible asset, it mitigates the risk in your portfolio. Given this, it can lower your portfolio volatility and eventually provide a higher return per unit of risk.

It comes with various tax benefits.

Aside from gaining profits from real estate investments, you get to save more money as property investment provides numerous tax breaks and deductions. To simply put it, you can get tax deductions for the cost of owning, operating, and managing a property. Just ensure to record all expenses including maintenance, utilities, rental repairs, and insurance.

Throughout the course of owning a property, you will benefit from the various expenses as these deductions from your revenue will lower your taxed income.

Start Investing in Real Estate

Investing in real estate is a big decision. It’s definitely something that you need to plan and research before closing any deal. Make sure that you are ready with your deposit and have a stable stream of income. Look for developing neighbourhoods in your area. Lastly, manage your risks and calculate your possible profits.

If you’re not sure if you’re ready to invest in a property, get a free consultation from us and we’ll gladly help you in weighing the decision.