How Can You Afford to Buy a Big House in 4 Steps?

Amidst a competitive property market and sharply rising house prices, buying a bigger home in the UK can seem like an increasingly daunting task. Luckily, it’s still possible to up-size your home without breaking the bank. Whether you’re considering up-sizing your home due to a pay rise, a new job, relocation or a new arrival in the family, there are some important factors to take into consideration when buying a bigger home.

What are the advantages of buying a big house?

There are multiple advantages to upscaling your property, with the most obvious being extra space. While extra indoor and outdoor space may be a necessity for those with growing families, pets or multiple cars, it is also especially useful for remote workers. As well as increased living space (and the potential for previously inaccessible luxuries such as swimming pools and home entertainment rooms), larger homes tend to accumulate value more quickly than smaller homes – this is especially useful if you’re thinking of selling in the future. If you’re considering making the move, take a look at 4 simple steps you can take to work towards buying a bigger home:

1. Budget: The first and most obvious step to take is making a realistic budget for your new home, informed by current incomings and outgoings. You’ll need to factor in potential up-front costs such as deposits and Stamp Duty Land Tax, as well as monthly payments such as mortgage fees and energy bills – it’s worth remembering that the value of these will increase with the size of your property. Creating a budget is a reliable way of controlling your finances, saving necessary funds and establishing a timeframe in which you’re planning to make the move. Consider making use of professional financial planning services to make the task easier.
2. Research: Once you’ve established a realistic budget and timeframe, it’s essential that you thoroughly research your target market, including average property prices, accessible property types and the quality of local services such as schools and hospitals. This should enable you to get a better idea of which properties are within your price range, and is essential if you’re looking in an unfamiliar area.
3. Consider Resale Value: You can use the findings of your market research to inform your decision when it comes to choosing the best property, especially when it comes to gauging potential resale value. Important factors to take into account include current/historical value, comparable local sales, energy efficiency, local amenities, age and condition. You may be able to boost resale value by choosing a relatively low-value property that requires restorative work – just ensure that you factor renovation costs into your budget.
4. Make an Offer/Mortgage in Principle: Once you’ve decided on your dream home, it’s time to make an offer. Don’t be dejected if your offer isn’t accepted, and don’t be afraid to negotiate and bid over or under the asking price. Getting a mortgage in principle from a broker is a great way of getting the best deal and showing the seller that you’re organised and committed to the property. Good luck!

*This is a collaborative post.