Upgrading to a Bigger Home: What to Consider in 2019
There are opportunities to pay attention to in Vancouver’s market this year.
2019 could well be looked back at as the year of “Upgrading To A Bigger Home”. With the drop in detached housing values in all areas of Vancouver and low-interest rates, there is likely no better time than we have seen in years. Seemingly gone are the days of historic value increases in this segment of the market. While condos, townhouses and duplexes have seen a bit of a drop, it’s not to the same degree as single, detached houses. Though the higher in value you go typically the bigger the drop, regardless of property type.
Neighbourhoods that have been a major financial stretch for those living in smaller homes are not as difficult. The gap has narrowed to a degree that there is a real benefit to consider. There are houses in Kitsilano, Point Grey and Dunbar that were selling for 3.2 – 3.5 million at the peak that are now 2.8, 2.5 or even 2.2 million. (You can even enter into a couple of these neighbourhoods for under $2 million now, if you’re willing to put in some work.) This cannot be said of every neighbourhood as homes that are worth approximately 1.5 million are still moving closer to their peak values which have only decreased slightly – see: the East Side or North Vancouver, for example.
It doesn’t need to be a single detached house to realize the value of moving up right now. As mentioned above, the higher the value, the bigger the drop on average right now. So even if you’re thinking of moving from a one bedroom condo to a two bed unit with more space, the price drops spell savings for you. But, worse case scenario, lets assume it’s the same price drop across the board for what you currently own and what you’d like to buy:
- Take 10% off of your $500,000 condo (-$50,000 = $450,000).
- Now also take 10% off of the $800,000 condo you’re pinning over (-$80,000 = $720,000).
- That’s a $30,000 savings which will pay for most, if not all of your expenses associated with the move (realtor fees, property transfer tax, etc).
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Next Steps Towards Buying A Bigger Home In 2019:
- Contact a trusted mortgage broker (need one? I can help, just send me an email. I’d be happy to introduce you to an excellent broker or two for you to chat with/interview). It is essential to know your financing options. Once you have a clear view of what you can afford, above and beyond your current home, it’s time to move to the next step.
- Call me, we can discuss what your options are. Which areas make the most sense for your desired lifestyle, future equity/investment growth. Ultimately assist and advise you in the most considerate and professional manner possible.
- Deciding on whether to buy or sell first – this one is deserving of it’s own section. See below…
Buy or Sell First?
Like so many real estate questions, the answer comes with a caveat – It depends. To answer the question of whether it makes more sense to buy or sell first, it depends on a number of factors. Here are some factors to consider as you make the decision on your next move.
- The specific location of your current residence in Vancouver. If the house you own is a highly desired space in a price point that is still moving a bit more quickly it may very well make sense to purchase the bigger home first, then turn around and sell your existing home. Lower price points typically sell more quickly (if you used the correct strategy and positioning!)
- The current state of your home. Does your home look ready for a photo shoot? Or, does it require some investment and elbow grease to get it up to snuff?
- Perhaps you would like to know exactly how much equity you can pull out of your current home before purchasing your bigger home? In this case, you may choose to sell first. Sounds simple, right? But, here are some points to consider …if you sell your first home before purchasing your next bigger home, where will you live if you cannot find your next purchase before the closing date of house #1? What’s your plan B? (Offering with a Subject to Sale of your existing home is a great option in this market for example).
There are so many important things to consider when upgrading to a bigger house. The above is a very general overview, this is truly only scratching the surface. Call me, I can help. I advise clients of their next steps each and every day!
If you are looking to buy or sell in 2019 or want to know more about the Vancouver real estate market, contact me here for professional and experienced guidance!
Do you know someone who needs help buying or selling a home? Refer a friend here
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