You may have run out of space or your house might be in an urgent need of an upgrade. If you’re at the point where your home no longer meets your needs then you face one of life’s big decisions: to renovate or relocate.
If the challenges of renovation appear insurmountable (due the condition of the house including the wiring, structural flaws and the ever present concern of over capitalising) or you’d like to move to a new area (to be nearer the childrens school for example) then the options to relocate (upgrade) or, if you love your location but cant stand your house, to knock-down/re-build are worth considering.
Once you have built up a sufficient deposit and we have established your borrowing capacity with a range of banks, its then up to you to decide on a property. Phase two of the process is to formally arrange your finance. The main issue with arranging your finances is to identify the right home loan with the required flexibility and most attractive interest rates. The features that would most likely assist you could include the basic repayments options, namely interest only or principal and interest (P&I), but could also include features such as flexible repayments, the capacity for additional repayments, Repayment redraw facilities, repayment holiday’s and mortgage offset accounts. Before you embark on the process of selling/upgrading or demolishing/rebuilding, there are some of the key issues to consider, including:
Download this handy guide that the team at Intuitive Finance has put together for you.