There’s a saying, “Go big or go home.” What if you want to make your home a big part of that statement? Of course, there are many pieces to consider when considering making a move, especially when upsizing your home to accommodate your growing business. Consider the following advice from Right Key Mortgage.
When your business is growing, many home-based entrepreneurs start feeling the pinch of their current home. But it’s crucial to look at the real estate market, both locally and nationally, to get a feel for the current market. Is it primed for selling your existing home and buying a larger, more upscale home?
The pandemic changed the economy, including the real estate market. Redfin notes that home prices have risen nearly 25 percent in the last year, since more people have been shopping for houses in a market where the number of available properties has dropped. So, comparing the national market with your local market after talking with a real estate professional can help you decide if it’s the right time. The good news is that now is a great time to apply for a mortgage with a desirable interest rate. Contact Right Key Mortgage if you’re ready to start the process!
Moving isn’t cheap. First, there is the cost of the move itself. Hiring movers, a down payment, and the closing costs of a new home all add up. Plus, there is a risk involved if you need to sell your current home. For example, if your house doesn’t sell, you could be carrying two mortgages. Or, if your current house sells quickly, you may be desperate to find a new home.
In addition, depending on the market in your area and what you initially paid for your existing residence, you could be substantially increasing your property taxes. In addition, Dumbo Moving points out that bigger houses mean more gas, electricity, and water usage, which jacks up your utility bills. Research all the costs and what you can realistically afford before making your decision.
An Alternative Option
Some business owners purchase their home under their LLC (Limited Liability Corporation). See if this is something your mortgage provider allows. If you haven’t yet registered your business with the state, check local regulations before creating an LLC, as each state has its own rules for filing. You can use a business lawyer to file your business entity or use an online service like Zen Business to do it – digital entities are the much more economical option.
The Final Decision
Deciding to upsize is a decision not to be taken lightly – after all, there are many factors to consider. Working with a realtor can help you sort through the research and help you narrow down what you’re looking for from your new home.
Ultimately, taking your time and considering your options, like forming an LLC or using your current LLC to purchase your home, is worth the effort. Since many people live in their homes for decades, you’ll want to ensure you’re making a decision that you’ll be satisfied with for years to follow.
Now you can decide if going big and going home is the right decision for you in today’s market. Either way, your thriving business can give you and your family options as things continue developing. So, do your research, ask questions, and choose wisely based on your current situation and your future plans.
Author: Amy Collett