Renovate or move?
Renovating is a big decision, but it’s ideal if you’re happy with the location of your property and want to avoid the costs associated with buying and moving to a new home.
Before you get started, consider whether renovating is the right choice for you.
Whether you’re thinking of making major structural changes to your property or just want to give your home a facelift, there are a number of benefits to renovating.
- A well-planned and executed renovation can add up to 10% to the property’s value, which is useful if you’re planning to sell your home in the future
- You’ll avoid the costs of buying and selling a home, including Stamp Duty as well as legal, registration and real estate agent fees
- Unlike an established home, renovations can be tailored to your changing needs, whether it’s a growing family or a retirement lifestyle
- You can make small changes, such as a new bathroom or kitchen, and design it in your preferred style
- If it’s an investment property, renovations can be tax-deductible or depreciable over a number of years, potentially reducing the amount of tax you pay
- You can save energy and water by making your home more environmentally sustainable
- If you’re handy around the home, you may be able to do some small renovations yourself to save money and get the results you’re looking for. It can take time away from enjoying your lifestyle and requires specialist knowledge to avoid renovation mistakes, so weigh up the real costs and dangers before picking up the hammer.
Renovating isn’t for everyone, so it’s important to consider whether buying a new home is a better option for you.
- Location is the most common reason people decide to buy a new home, rather than renovate. Consider whether buying in another location will better suit your lifestyle and help you benefit from increased capital gains. Want to know more about a property or an area you're considering buying or selling in? A complimentary Property Report can assist you in making more informed property decisions, depending on your needs.
- Many home owners underestimate the cost of renovations, or end up overcapitalising (spending more on the property than you could sell it for). Make sure you crunch the numbers with a lending specialist to work out if buying a new home will help you achieve your financial goals
- Your home may not be suitable for the renovation you’re planning. Get a building and pest inspection to see if factors like dry rot or white ants will affect your decision to renovate or move
- Renovating takes careful planning and management. Consider whether you have time to manage the progress and results of a team of contractors and tradespeople.