Should you renovate or buy when it’s time for a change?
What if we told you buying a property wasn’t the only way to live in a new home? Renovating your home could add to its character and functionality making it feel new and refreshing, rather than old and familiar.
If your neighbourhood or your home is special to you, renovating is a great way to keep your old property fresh.
But like with any decision, picking a purchase or a renovation each comes with its own pros and cons. Here’s what to look out for.
Renovate and refresh
Moving home may rank as one of the most stressful life events for the average Australian, so don’t put yourself through it unnecessarily. A 2016 Houzz survey found that 46 per cent of respondents renovated because they wanted to stay in the same home.
If your home is special to you, renovating is a great way to keep it fresh. It’s also worth looking at the future of your suburb before deciding. Using tools like Pricefinder and Residex, or by speaking to your local real estate agent. If your property is declining in value, now could be the best time to take the plunge and leave before your equity starts eroding.
If value growth in the area is promising, however, staying put and renovating could be a great way to capitalise on that and increase your property’s value.
Houzz notes that the average Australian renovation costs $60,000.
Some 26 per cent of respondents to the Houzz survey believed renovating promised a better return on investment than buying did. You will have to monitor the price ceiling in your area though, lest you risk overcapitalising.
Houzz notes that the average Australian renovation costs $60,000, so it could be more affordable than purchasing a new home. Research and weigh up the costs before you commit to anything. Real estate agents and mortgage brokers can also help you understand the market and structure finances appropriately.
Buy and relocate
When you want to make a more drastic change, buying a new home is likely the right route. Relocating could be the best decision if:
- The area you live in has gone downhill (or is expected to)
- The council’s overly strict in your area and is making renovation difficult
- Your property has serious problems making renovations not worth while (a building inspection report will let you know)
When mind’s made up and you’ve decided moving is for the best, picking the right property should be your main concern. Apart from all the usuals like proximity to schools, work, cafes and family and friends, look at value growth trends in each suburb.
According to Houzz’s data the average cost of Australian renovations in 2015 was over $60,000.
If you choose right, you could build considerable equity through your property’s value gains without even making a single mortgage repayment. When you eventually sell the property this will mean you make a larger profit, and can potentially move on to an even better home when you decide to relocate again.
If you’re ready to make your move and get into your new property get in touch with a real estate agency you trust.
With a professional to guide you on the way, you can feel confident that your choice is the right one.