Upsizing The Home? Ensure It Will Be Financially Secure For Your Family

It’s a good time to be the owner of an American home, as research reported by CNBC has found that homeowners have $5.4tn of tappable equity. For the mother of a young family who has scrimped and saved for a number of years, there has rarely been a better time to upscale, despite house prices being at their highest point since 2012. However, no family should rush into a home purchase – it’s essential that you consider the long term implications of your new home and how it will impact on your children before you buy and settle in to the property.

Preparing for future financial climates

When you go to purchase your home, consider the financial impact it will have on your family in a few decades time. Many homes will only increase in price due to inflation, according to RealEstate.com, and so it’s important to protect the bottom line of your would-be home. There’s a lot to consider, especially with the prospect of climate change. According to the Pacific Standard, up to 16% of American homes will be exposed to flood by 2100 due to construction and growing floodplains. A change in area prosperity and local business changes can also cause property value reductions. To ensure that your children will inherit a viable asset that they can live in, sell or rent, or release equity from in order to fund their lives, conduct due diligence on the area and condition of the housing and local area.

Considering utility load

As a diligent homeowner, you will likely have an extensively detailed and comprehensive budget to tally up incoming and outgoing funds. If not, you really should put time into one. Despite the best budgeting habits, many families already struggle, according to Consumer Affairs, who found 20% of households are cutting back to pay for basic utilities. Increasing the size of the home can have a sting in its tail in this regard, as costs will likely be elevated. Use tools like the Energy Use Calculator to estimate your bills before you move.

Making use of space

It’s understandable that you will want more space as your family expands. For multi-child families, the desire of older children to have their own space and storage areas can become persuasive, as can the need for dedicated nurseries when just started out with the youngest children. Despite this, it’s important to make the most of the planning process. Try to imagine exactly how much space you have, and how you’re going to fill it. An empty but large home can be worse for the family relationship than a small and cozy one, according to Realtor.com. Certain features may seem cool, but question what you’re actually likely to be able to find the time and effort to use.

Upsizing is the natural process for many families. The first home simply becomes too cramped, and children need their own spaces to develop and flourish. What’s important is to not jump in headfirst; plan your steps carefully, and you’ll benefit in the long run.