How do you know it’s the right time to upgrade?

There are all sorts of reasons for homeowners to contemplate moving to a bigger or more upmarket property, such as the need for more space to accommodate a new home business, growing children or ageing parents, or perhaps just the desire to live in a better area.
But they should not make the leap, says Berry Everitt, CEO of the Chas Everitt International property group, until they have made sure most of the following indicators are positive:
* Income. Upgrading will generally mean a bigger home loan repayment every month. You need to take an honest look at your budget and your employment / salary prospects to see if this would make sense for your family.
* Interest rates. Low interest rates make it easier to qualify for home loans and also mean you can get more house for the same money, so this may be just the time to upgrade. You need to remember, though, that rates can rise rapidly and once again ensure that you will be able to afford the bigger monthly repayment if this happens.
* Credit rating. It is unlikely that your application for a new home loan will succeed if you have a bad payment record – even when interest rates are low and you are earning a good income. So before you go hunting for a bigger or better home, you should consult a mortgage originator to establish whether the banks would regard you as a good prospect and how much they might be prepared to lend you.
* Equity. This can help you to avoid a bigger mortgage payment. If you have built up substantial equity in your current home and are able to realise it when you sell, you can apply this to the purchase of your new home in the form of a chunky deposit.
* Market conditions. In order for you to sell your existing home easily and realise your equity, the conditions in your local market have to be right. You should consult a reputable local agent to find out what the current situation is.
Issued by Chas Everitt International

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us