Whether you’re a growing family, a family looking for more space to spread out, or simply a homeowner with a bigger budget and more money to spend on your dream home, upsizing is on the bucket list of many who browse the property market on the regular basis. And from additional bedrooms to larger living spaces and a greater overall area, there are many benefits associated with upsizing.
In this blog post, we take a closer look at what it means to upsize, what some of the most common reasons for upsizing might be, and a few considerations to take into account before you make the plunge.
What is upsizing?
Upsizing is all about moving into a home with more space. That could with regards to the overall square footage, or with a focus on specific factors such as more bedrooms and/or bathrooms – but for the most part, upsizing means just that: moving into something bigger in size. It is the opposite to downsizing, which we covered in an earlier blog post.
Reasons to upsize
The reasons to upsize are varied and will depend on each individual homeowner, however we tend to find that most look to upsize for one of the following reasons:
- They are looking to start or expand their family and thus need an extra bedroom
- They want to make better use of living space, perhaps with a larger living area or garden
- They are moving in with a new partner and both want to upgrade from their individual homes to something joint
- They have a new job or a higher income and want to upgrade their home accordingly
Things to consider
So, with upsizing such a popular go-to for homeowners, what are the things that you might need to consider before jumping into a bigger property?
The first is budget – not only for the purchase itself, but the ongoing maintenance and running costs for a larger property. So many homeowners and buyers will commit to a larger house without giving adequate thought to how much it will take to keep the home warm and running effectively – finding themselves paying much higher monthly bills as well as a larger cost to buy the property.
Another thing to consider is the logistics of moving, from paying the stamp duty on a larger house to changing location – and all of the extra admin that comes with that. For many, while upsizing is attractive, the amount of work involved soon starts to feel overwhelming.
While you’re at it, give thought to the value of the property you are looking to move out of. Are there changes you could make that will support the lifestyle you’re looking for, and that could also increase the value of the property? You might find that a few renovations give you the extra space you need and make your home more valuable for future resale.
Finally, consider the features you are actually looking for in a new home. Are you going to be gaining an extra bedroom but losing out on some of the features you love about your existing home? Is it more important to you to have a great outdoor space or a larger kitchen?
Upsizing and stamp duty
Back to stamp duty and one of the most frequently asked questions associated with upsizing. What exactly does upsizing do to stamp duty?
Upsizing means that you will pay stamp duty – the only buyers who are exempt are first time buyers, and so by definition the likelihood is that if you are moving from one property to another, you will be subject to stamp duty. This cost can be substantial depending on the size of the property you are buying, so be sure to understand exactly what that fee looks like and factor it into your budget.
Alternatives to upsizing
The number one alternative to upsizing is renovation and extension, taking what you already have and transforming it into something that you want or need as part of your upsizing dreams. This could be changing the use of a specific room into something that supports your need for more space, or it could mean breaking ground on a new extension so as to maximise the way you can use your interior space.
Another alternative is to invest in a summer house or garden room which provides an extra living space to your home but without changing the layout – instead turning outside space into an additional interior area.
