Property Matters – Upsizing: buying a bigger home
Upsizing or purchasing a bigger home may become necessary as your family expands; a larger garden or extra rooms are needed for the children and pets or even a newer state-of-the-art kitchen for the lady of the house. Whatever the reasons for upgrading, price is a big deciding factor so set a budget and try to keep within that budget as much as possible.
When upsizing or looking for a bigger home, try to keep in mind exactly what your family requires. Should you require an extra room then try not to go for a house with two or three extra rooms or a large garden when all that is required is a small one. A larger garden or extra rooms mean additional monthly maintenance work as well as higher costs, unless gardening is a hobby and the intention is to maintain it yourself.
Also, consider the monthly costs involved in maintaining a bigger home. In most gated communities, a common area management fee (CAM) is calculated on the size of the property, meaning the bigger the land plot the higher the CAM fees. As there is no financing available in Thailand for foreigners to purchase properties, a bigger home would have to be paid for in cash. Alternatively, research mortgage rates in your home country and consult a professional advisor as to the ability of financing a bigger property. Also keeping in mind the weather conditions in Phuket, as maintenance and improvements to a home here should be done on a regular basis.
In the event that the bigger home is not a new property, there may also be minor renovations or maintenance works that would need to be done to spruce up the place before moving in and all such costs will need to be factored into the budget. Should there be major renovations involved, consider the need to hire a project manager to oversee and manage the renovation works which will involve multiple contractors as well as service providers.
It’s also advisable to list your current home on the market before looking for a bigger one. The price that your home actually sells for and the asking price may be drastically different depending on how long it takes to sell and the current property market conditions. Obviously, your new home will be more expensive than your current home and the difference will have to be covered. If there is no purchase deadline on the new home, then there’s no need to be pressured to sell quickly or take a lower price than expected for your current home.
When selling your current property, it’s best to prepare the home and to have a professional photographer take photos that showcase the property best. This also allows the homeowner to pre-select photos and set up links to access the photos online. All documentation relating to the sale of your current home should be prepared and filed, including copies of the title deed, land lease registration, agreements, building permits, company documents – all to be easily produced when required.
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