Should you renovate or move?
It's the apartment you moved into when you got married, the house you brought your babies home to, or the property where you've celebrated numerous birthdays and anniversaries. But lately there just hasn't been enough space and you really want that extra room. The good news is you do have options available.
Two feasible options are renovating your current place or buying a larger home that meets your growing needs. Both have lots of pros and cons, so here are a few tips to help you consider whether to renovate or move.
1. Plan to succeed
What are the key renovations you'd like to make to your current home? Make a list with your 'must have' and 'nice to have' changes and then find out if it will be possible to pass those changes through your local council. Review the likely costs of renovation and discuss your situation with a real estate agent to get opinions about how it may add to the value of your home.
2. Look around your local area
Consider your local area and how it fits your needs. Do you want to stay in the area, do you like the local facilities and transport? Are you close to family and friends and do you have schooling needs to plan for, or consider?
3. Does it add up?
You'll incur different kinds of costs when renovating or moving, so spend some time crunching the numbers. If you renovate you'll need to budget for: plans, contractors, the renovations themselves, and possibly alternative accommodation during the building period. If you move you'll need to pay: stamp duty, conveyancing and legal fees, estate agents' commissions and marketing costs, moving costs, and possibly refinancing fees.
Use our borrowing power calculator to find out how much you can borrow to help with your renovation or move.
Choosing to stay and renovate, or sell and move can be a practical but emotional decision. But once you've done the planning, you'll have a good idea of the scope and costs of both options and be able to make a decision that best suits your needs.
4. Some useful sites
The Australian Government's 'Your Home' provides a guide on buying or renovating homes in an environmentally-friendly way.
Whether you decide to stay and renovate or move on and buy, CUA have plenty of home loan options with competitive rates and lots of extra features. Compare our home loans to find out what best suits your needs.
If you have any questions about CUA Home Loans you can speak to one of our staff in your local Branch or call us on 133 282.
Please note: This is only intended as a general guide in relation to issues you may want to consider when deciding whether to relocate properties or renovate your existing one. It is not intended to be an exhaustive list of all relevant issues and you should take into account your own particular circumstances, and obtain independent expert advice where needed, before proceeding.