Everything has a beginning and an end, including housing. Moving house can be scary, but there are times when it is the best option without a doubt. The key is to know the process well and how to make this transfer from one home to another in the best possible way.
Why move house… or not
There are many reasons for moving house and all are equally valid, although some make more sense than others. The reality is that, more or less, everyone has in mind to change residence.
According to data from Aedas Homes, almost a quarter of the population would like to move in two years and 44.5% plan to do so in 5 years.
What are the reasons for moving house? Basic questions such as the need for a larger house because the family has grown or is planning to do so. Along the same lines, it could also be a change of neighbourhood for the children, because your preferences have changed or because it fits better into your financial plan (there are neighbourhoods and areas that are cheaper than others).
There are also those who want to leave their house because it is old or they are simply looking for a better house.
These are the reasons for moving house and their weight will vary according to each person's preferences. Let no one tell you that one is stronger than the other, because only you know what situation you are in.
From there, there are times when moving can be a good idea, such as when you want to become independent, or when family or work needs change. or simply improve your financial situation.
Advantages and disadvantages of moving house
The advantages of changing homes seem clear, although they may vary depending on each case:
Expand your space with a bigger house
Adapt your home to your economic reality or your economic plans (because you earn more or less and want to save on the mortgage)
Improving quality of life with a change of area
Save money with a better mortgage or rent
The downside is also clear and starts with the cumbersome move and its boxes. Of course, there will also be additional costs and a whole search process, which can be a great adventure if you approach it properly.
House flipping: tips for success
What can you do to make this adventure a success? If you want to enjoy the search process, not overspend and make the right decision, these tips will help you achieve this:
Budget
The first and perhaps most important thing in the whole process: how much do you want to spend on moving house? Clearly set your budget so as not to spend more than you should and avoid falling in love with homes that you will not be able to pay for later, which is a very common mistake when buying a house.
In short, calculate how much house you can afford with your salary, taking into account the maximum amount that the bank will finance you and the rest of the housing expenses.
Type of housing and neighborhood
Remember why you want to move house and what you are looking for when you move. This means researching and focusing carefully on the type of home you are looking for and the neighborhood or neighborhoods in which you are willing to live.
Again, this will help you avoid wasting time looking at houses that don't really interest you. However, be careful not to narrow your focus too much, as this can lead to a long wait to move house or to paying more than you should.
In any case, explore the destination neighborhood well before deciding.
Do your homework before buying
Who owns the house? Does it have any mortgages? What is the condition of the building? These are all questions you need to answer. The property registration note will give you information about the seller of the house and the legal status of the property.
For anything related to the state of the house, possible charges or problems in the building, you can ask the neighbors or the doorman.
Be clear about the deadlines, make sure you will always have a roof over your head. One of the key aspects when moving house is the time between leaving the old home and moving into the new one. Beyond planning the day of the move, it is important to fine-tune the move-in and move-out times, whether you are renting or the house you are leaving is owned.
If you need to do some work on your new home, remember that the renovation may be delayed, just like if you buy a new build home. The last thing you want is to get to the time of moving house and find that your new home isn't ready.
The solution is to leave some time for the change, especially if you have to sell your house or you live in a rented house and you know that the landlord will not extend the contract for one or two months.
If you need to sell your house to buy a new one, don't worry because there are financing solutions. You will see them now.
What about the mortgage?
Most house moves are for improvement, which means a bigger and more expensive house. In other words, a new mortgage.
There is a special type of mortgage for moving house. It is designed for those who need to sell their old house to buy a new one: it is the bridging mortgage , a mortgage loan designed for moving house and with which you will normally stop paying the first mortgage until you sell your home. This type of mortgage for moving house also usually includes initial grace periods where nothing is paid or only interest is paid.
With a bridging loan you can buy the new house and then sell the old one, so you won't have to worry so much about the deadlines.
And if you don't need a bridging loan, but you do need to make changes to your home, remember that there are mortgages for buying and renovating that combine the two loans into one.
The 1+1 Option
Finally, you can also take advantage of moving house to become a landlord. This is what we could call the 1+1 option.
In other words, moving house and keeping the old one to rent it out. If it has a mortgage, the rent can cover its cost and even give you some extra money to cover the move. Plus, when you finish paying off that mortgage, you'll have passive income every month.
What about the new home? You can finance the move with a mortgage, as you would normally do.
