When posed with the question of moving, it is oftentimes not if, but when. While families grow and shrink, so do our needs in regards to where we live. That is why oftentimes you will see grandparents living in apartment buildings or condos. It is not because they cannot afford a house, but because they simply don’t need one. So when should you be purchasing a new home to downgrade or upgrade?
The primary and most common reason to be moving from one house to another is the size of your family. When having children, it is smart to look ahead to moving into a larger house to account for more bedrooms. However, the same can be said for when children begin to move out. Often families will keep a child’s room the same while they are in college. This is because they do not know the outcome of the stability of their children’s living situation. However, once they are stable on their own, there are several empty and useless rooms in a house entirely too large for you. This is when individuals will begin to downshift into apartments, small homes, and even condos.
Purchasing Home Price
Another primary reason to move from your house and purchasing another would be the value of your home. During large market spikes, it is often possible that your home’s value has raised significantly while upgraded versions did not. This is a great time to utilize some leverage the market has given you to sell your house at an increased rate. This helps you move up often several years ahead of when you would have normally moved up the chain.
All in all, there are many reasons to sell your home and they will come and go during the duration of your ownership. The primary need that must be addressed across all reasons is your gain/loss ratio. If you sell your home too close to when you purchase it, you may end up losing too much money to make the process worth it. However, if you wait long enough, the gain of being a homeowner does pay off after some time in your residence.