Your home no longer meets your needs, so do you buy a new one or simply renovate the one you have? There is no simply answer to this question and there’s a lot of factors to take into consideration; things like your budget, the market, your current position including proximity to work and services, as well as how attached you are to your current home. It’s a good idea to have a look at new house designs to see what might suit you better; click here to get started.
Compare Costs
Moving into a new home can actually cost you less than renovations, depending on the age and condition of your existing home and what renovations you wish to carry out. Research is important here. Get firm quotes on renovations and beware of hidden costs. Also be careful that you do not overcapitalise your property with expensive renovations. You need to ensure that you will be able to recoup the monies you spend on renovations should you decide to sell your property later.
How Important is Your Current Location
This is one of the most important considerations when making a decision between renovating and buying a new home. How embedded are you and your family in your neighbourhood and local community? Will moving require your children to change schools? Will a new home mean leaving behind great neighbourhood friends? These are important questions to ask and will ultimately affect your decision. There is often more at stake than an extra bedroom.
The Stress Factor
Renovating can be very stressful. You will need to deal with tradesmen and contractors, ensuring that everyone is completing their tasks competently and on budget. It is not uncommon for renovations to blow out, becoming more complex and more expensive than originally planned on. Renovations will need to be approved by local council and you may find you need to jump through lots of frustrating hoops to gain sign off. And once you have decided to renovate you will be faced with weeks or even months of disruptions to your home.
Hidden Costs
Buying a new home will cost you more than just the purchase price. If you need to sell your existing home you will be charged commission by the real estate as well as having to pay conveyancing fees. You will also pay stamp duty on your new home. Make sure you do your sums to work out what option makes the most financial sense.
It’s All About Lifestyle
Whether you are renovating or moving to a new home, the main motivator is improvement in lifestyle. Think about what you have now and what you will have if you move. Do you have a big yard to enjoy in your current home? Is it close to parks and schools? Do you have relatives that live close by?
Both moving and renovating can contain hidden costs. Spend time adding all the costs as well as the pros and cons of each alternative, then you will be able to make a really well educated decision about whether to renovate or buy a new home.
