There are many factors that need to be considered when deciding whether to renovate your existing home or sell up and buy new. Everything from size and budget, to location and flexibility should be considered when weighing up your options.
When to Renovate:
Renovating can be a great way to breathe new life back into your home. If you’re looking to create the perfect interior to suit your style, then renovating could be for you.
What to consider:
Location, location, location. It’s one of the most important considerations when choosing a place to live. If you currently live in the neighbourhood of your dreams and dread the thought of uprooting, then renovating may be the solution that gives you a ‘nicer house on the best street’.
That being said, it’s obviously essential that the market value gained by renovating your home far exceeds the costs.
Time & Flexibility
Renovating can often be a long, slow and sometimes laborious process that can require months of living in less-than-optimal conditions. If you don’t have the time or the flexibility to accommodate renovating then you should consider buying new (or newer).
When taking on help it is essential to determine the exact project scope and the realistic budget that will be needed to ensure you get the job done. There will most likely be unforeseen costs that will gather along the way so make sure you have set aside an extra 10% of your budget for these little hiccups.
Renovations require local council approval and conformance with your state’s building regulations. If you’re dreaming of adding a second story to your home but can’t gain council approval, then it’s time to buy.
When to Buy
Buying a new home signifies a big change in your life. As your family changes and grows, your home might need to expand with it.
What to consider:
Sometimes you just need more space, plain and simple. If you’re about to start or add to your brood, then you’ll be needing extra room. Unfortunately, it’s not always as simple as just adding an extension. You need to have the space to accommodate it. When space is an issue, and you don’t have time or means to renovate, then buying new could be your best option.
State of Your Current Home
Before deciding to renovate or buy new, a home inspection can give you valuable insight into the state of your home and the outcomes your efforts will achieve. If you feel as though your home is ‘beyond repair’, buying new can save you a whole lot of time, hassle and headache.
Comparing your long term goals with your financial position will give you the right means to make the decision between renovating and buying new.
It’s important that your finances are up to scratch before taking the plunge. New homes mean settlement and real estate fees, moving fees and seller closing commission, whilst renovation often equals contractor fees and unforeseen costs. Either way, money will be spent, but you need to determine what makes the most financial sense for your circumstances.
If you’re ready to buy and you find the right property at the right time, you can make a sizeable profit whilst being able to move into your dream home. Our advice? Chat to an expert. A quick conversation with a reputable and knowledgeable property company can help you decide what makes the most sense for you when it comes to buying a house.
Whether you decide to give your home a makeover or start fresh in a new place, you are building or improving upon your assets, which is always a smart choice.
If you have any enquiries about the property market, or just want to chat to a knowledgeable property agent, feel free to get in touch with us and speak to a member of the Leasing Elite team.