The cost of bringing up a child under the age of two is around $12,500 a year. If you have more than one child, this figure can be extremely prohibitive if you want to move house. Families often find themselves financial stretched just meeting day-to-day expenses, let alone planning for the future. So how can you push forward with your life and plan a house move?
Compromise on area
The median cost of a home in America is $200,000. This can vary greatly though from one area to the next. For instance, the average one-bedroom apartment in Manhattan will set you back $710,000. Whereas if you move to Texas, you can buy a large four bedroom detached corner plot estate with outbuildings and office space for half this amount - certainly big enough for any growing family. This might be an extreme comparison, but even within a town, there can be a substantial difference in house prices. According to Zillow, in North Carolina, the average cost of a home is $175,000, however, in say, Wilmington, this figure is $40,000 higher. Think about what your priorities are, then consider compromising on the area that you live in.
Look at an equity release plan
Many families with young children get help from the older generation when purchasing a new home. If you want a bigger house but can’t afford the purchase price, then asking a family member to release equity from their home may be the answer. A study by Harvard University found that 40 million Americans can’t afford to pay for housing that fits their needs. In North Carolina, it has also been found that 43% struggle to afford a 2 bedroom apartment. Equity release means that you will have a valuable financial bump to be able to afford a bigger home - you won't have to struggle. Your family member can still continue to live in their home until they choose to sell it.
Consider your mortgage options
Financing a house move can come from a number of different sources. You may be able to raise money from a business, or cash in some savings. For most people however, the best way of raising a substantial sum of money to fund a house move is through a mortgage. Mortgage and remortgage offers can vary greatly from one financial institution to the next. It helps to shop around. It may also be worth speaking to your existing mortgage provider if you have one. They may be able to provide you with a better interest rate through a fixed term lending period.
If you have a young family, you need more space. Moving home might mean a little compromise, but it will be a great investment into your future.