In the previous article, we explained that the millennial generation must have a house first, upgrade later. Yes, along with increasing income, someone who already owns a house tends to want to find a new residence that is bigger or more luxurious than his current residence. This is called an upgrade or upsize. The decision to upgrade the house turns out to not be arbitrary, you know. There are a number of things that you should consider beforehand so that you don’t upgrade your home in half or even get into debt.
Then what are the things? We have prepared a special summary for you readers
Calculate Credit Ability
When you apply for a mortgage, the bank will assess the amount of credit to be disbursed based on income, expenses, number of dependents, banking status and tenor proposed. So, even if your income increases, it is not necessarily that you will get a large amount of credit!
Have an Upgrade Goal
What’s your goal in upgrading to a bigger house? To live with family or investment? This goal will certainly affect the criteria for the house to be purchased.
Calculate Additional Costs
A large house clearly requires more maintenance funds than a minimalist home. Likewise when doing renovations. Within a certain period of time, a property must be renovated for the comfort and safety of its occupants.
In addition to maintenance costs, you also need to pay higher taxes because they are calculated according to the area of land and building. Are you ready for these costs?
Pay attention to the difference in price
The name is also an upgrade, of course you have to sell the old house first before buying a bigger one. So, make sure the difference between the selling price of the old house and the purchase price of the new house is included in your calculations.
In essence, from careful planning to sufficient costs you need to prepare everything! Are you ready to upgrade your house?