The average amount of time that a resident spends within the same property in the United Kingdom spans about ten years. Does it not sound like a super long time to you, mate? Even if it does – it may feel much less to others. You see, the decision to shift homes is not something you think about overnight – you dwell over it and take your sweet time. There are so many variables to evaluate and consider before making the final choice. You need to see whether your fiscal situation permits such a move. You need to see how the real estate sector is functioning and whether it is conducive to a move at that point. Is it the right time to sell your current property and invest in a new one? Would you make a profit or a loss? Would your sale earnings allow you to buy a new home that is similar or an upgraded version of it?
When will you know that now is a safe time to buy a new home? Here is some guidance that we hope helps you and your family out:
You are spending money on repairs
When you realise that you are spending more money on your home repairs than on other miscellaneous items, it is a clear sign that it is time to move out! When your present home requires an approximate thirty percent allocation of your current gross income as repair costs, then it is no longer worth living there. Are the pipes acting up again? Did your boiler just knock off a few thousand pounds from your bank account? We hope you had boiler cover though to help you out during such expensive times.
If your current home has physical issues that go beyond the structure, then you may want to consider getting it fixed and selling it at a premium if the real estate industry dynamics favour that. It may be better to buy a completely better property yourself as you do not want to be spending more on the property than what you pay to your mortgage service provider as fees instead. Why get into extra household debt when you avoid it with some smart planning and renovation investment? Hey, if you get a new job and are able to increase your income, sure go ahead and continue maintaining your current property. But you may find the whole process to be a mentally exhausting time that drains you both emotionally and physically. We recommend that you at least consider the option to research buying a new home.
You have spent five years or more here
So, it is said that one should spend a minimum of five years if you want to sell your current home without losing any fiscal value on it. Instead, the expectation is to earn some gains. Mate, you are a smart cookie. You are already a homeowner and quite in tune with the fiscal expenses that come with buying and selling a home. If you want to try to put your property on the market, do not forget that about five or six percent of the sale price will be going to the real estate agent as his commission for his hard work. Sure, you could try to list your property on the market yourself and try to sell autonomously. But studies have shown that when a real estate agent is involved – a property tends to sell for a premium price. That commission may be a small price to pay for a better deal!
Your neighbour just sold his house
Your neighbour just sold her house and made some sweet gains off it. Of course, you may aspire to do the same! The market is doing well, why not benefit from it, right? Well, there are a few things you need to do first before getting too excited mate. First of all, is your property similar to your neighbour’s? This is in terms of size, features etc. Does your neighbour have bigger rooms, a better equipped kitchen or say a Jacuzzi in the basement? All these factors have to be compared before you can make a decision. If you are not sure, go ahead and enlist the services of a professional and get some guidance. Then, you can decide what will work or not work for you.
Your lifestyle has changed
You are a young couple living in a one bedroom apartment in the city and expecting your first child. It is time to move your current home as you will need more space for the baby. With these upcoming responsibilities, your present property is too small for your new little family. In the future, it is possible that you have more children. It’s time to move to the suburbs where you can have a backyard for your baby to grow up in and run around in. you could move to a better district with better schooling, closer to friends and family and better healthcare services. If you are still a bit confused, why not make a list and see what works for you?
The market is hot for selling
The norm is for a property to increase in value since one first purchases it over the passage of time. The market is hot and you want to reap its perks by selling your property. Do your homework and make sure that it will remain positive for you, as a seller, for some time. After all, selling a property is a long process and does not happen overnight. Here are a few ways to do just that:
- Properties around your district are going fast
- Your neighbours have put their homes on the market
- The price per square foot is on the rise in your area
We recommend that you save yourself some trouble and just speak to a real estate agent to understand the current dynamics of the market and to see what’s going on. This way you will be better equipped to make an informed decision. We wish you the best of luck!