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MAJOR LIFE DECISIONS

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Written by Melanie Toye, April 20, 2012

Plan to Retire or Seek Out a Bigger Home?

There are many new opportunities that one needs to receive professional advice for when the time comes to consider major life decisions.

It seems when one enters the middle stage of life, many life changes occur. Some people seek out change related to career, relationships and in life, while others have change thrust upon them. The key to any type of change is to find out your options. Do your research and speak to the right professionals to eliminate risk and worry.

The age old question is do I focus on planning for retirement or should I buy my dream home? To seek out the answer, ask your self questions, for example: Am I happy to continue working for another twenty years to pay off a new mortgage? If I get sick and am unable to work, do I have the necessary funds to fall back on? Do I want to find a home I can settle into and pass onto my children? There are many questions to ask. Make sure you focus on what you really want and this will lead you onto the path you desire.

If you do decide to purchase a new property and require a larger mortgage, really consider how long you would be paying it off for, as well as if you want to continue working for a longer period. Of course, if you are earning positive cash flow from investments that will pay for the mortgage, then this will be security against any possible income loss.

Please note, when considering a larger mortgage the loan term is generally shorter, which means higher repayments will need to be calculated into your budget. When assessing mortgages, the banks decide the level of risk they are willing to take out on you. If you are self employed understand getting a bigger mortgage may also be harder to obtain. But don’t let this concern you as the first step one should always take when looking to buy property is to speak with a professional and find out exactly how much you can borrow and an estimate on repayments. This way you have a clear goal and can budget accordingly. It is best to never fall in love with a home for sale until you know if you can afford it.

By doing a little bit of research you will be able to determine how much you can live off. If you are a homebody than buying a home that you love to spend your days in may be just what you are after or if you want to tour the country in a caravan than by all means do it. You live the life you want. So create your dream life today.

Whether retiring or wanting a lifestyle change, look into your heart for what you really want. Then speak with a professional to find out how you can acquire it. Australian Mortgage Managers can provide you with the information you are seeking.