Many people dream of owning that perfect family home that will house many great memories for years to come. In areas such as Markham and Unionville, there are many homes to choose from and the sky's the limit when it come to price.  The following are just a few things to consider when you already own a home and you're considering moving up.

Selling or Buying First

Your best bet is to talk to a qualified real estate agent and discuss your options.  There is no one size fits all answer to this highly debated question, but your agent can discuss your personal situation with you and help you make an educated decision about what makes the most sense for you.  Much of your decision will have to do with your personal financial situation combined with the current market conditions in your neighbourhood.  On top of that, you'll have to consider the type of home you are looking for and whether or not it may be hard to find or readily available.


Obtaining A Mortgage

The first two steps you should take as a buyer moving up is to obtain a pre-approval from a lending institution and a free market evaluation from your real estate agent.  Your Realtor should be able to estimate your net equity after the sale of your home taking into account all the costs involved.  In Markham, Unionville, Stouffville and surrounding areas a buyer can be approved for up to 95% of the purchase price but would need to purchase extra mortgage insurance for any down payment under 20%. Buyers also need to keep in mind that some benefits afforded to first-time home buyers will not be available such as the land transfer tax credit, the homebuyer's tax credit(HBTC), and the homeowner's plan which allows buyers to withdraw up to $25,000 from their RRSP's tax-free.

The Right New House

Some of the main needs and desires of a buyer moving up to larger home include more square footage, more rooms, better floor plans, higher end finishes and elegant exterior architecture. Moving up also gives buyers  a sense of satisfaction and of having finally made it in life financially.  It's one of the main reasons and benefits so many people aspire to move up to a larger family home.  Some buyers who upgrade to a larger home also want nicer amenities and state-of-the-art features that they might have been missing from their starter home.  Some examples  include home theater rooms, space for home gym equipment, a recreation room for a pool table, a larger backyard, and of course more bedrooms and bathrooms.

The Best Neighborhood

One of the major benefits of getting a knowledgeable real estate professional to help you buy a larger home is that they know the local neighborhoods including the schools, parks, demographics, shopping, home values and more. Many buyers considering moving up should be aware that some of the best schools are located in neighbourhoods where the average price of most homes can be well above the norm. This can be a major deciding factor for many families with young children.  You've heard it before and you'll hear it again, but real estate is all about location, location, location.

High Resale Value

Buyers may not also realize that if they make the financial investment to move-up to a larger home that their home equity may have a better chance to appreciate more quickly in a real estate market like Markham. Such a purchase can pay for so many essential items down the road as you gain equity over the years. An equity loan can eventually be taken out to pay for your childrens tuition or it can possibly finance expanded career horizons by obtaining a business loan to become a successful entrepreneur. You might even consider using some of the equity in your home to purchase investments that could prove to be a superb source of passive income. This wonderful appreciation factor opens up so many financial opportunities that aren't necessarily as attainable down the road with a starter home.