Does your home no longer meet your needs? Is it perhaps too small and you are bursting at the seams or is it a bit old and dated and in desperate need of repair? So, the big question is do you renovate or relocate? The answer will depend on many factors including your budget and lifestyle choices.
Before you start asking the big question renovate or relocate you need to consider a few simple things first. Take into consideration what your current and long-term requirements are that you are looking for in your ideal home. What do you need and want?
Consider the following aspects:
•The size of your home – too big, too small?
•The location of your home – on a busy road?
•The neighbourhood – does it have access to shops, schools and public transport?
•The current state of your home – old and too difficult to repair or already a modern design?
•Your budget – what is possible?
Answering each of the above questions has taken you one step closer in the decision making process of what you actually need out of your home. Now it’s time to compare the advantages and disadvantages of renovating or relocating.
•Stay in the same location. You may already be in the perfect location and have settled in, and are in close proximity to friends and family, schools, parks and public transport, everything you want!
•Increases the value of your home. Renovating can make your home appreciate in value for a lot more than what you originally bought it for. This puts you in a good financial situation for when you eventually decide to sell.
•Adjustable to your needs and wants.Renovating allows you to change and alter the design to suit your needs perfectly. You may not have the budget to afford your dream home but you can convert the current one into your dream home.
•Potential of overcapitalising. Will you end up spending more money than the home in that location is actually worth and not receive your money back when you do eventually decide to sell? You want the sale of your home to eventually be profitable, but this can be risky if you decide to spend a lot of money on renovations.
•Financing. Take into consideration that you might need to take out a loan as renovations can be costly affairs. Also keep in mind surprise costs as renovations can often cost more than originally projected.
•Living on a building site. Consider living in a messy environment with lots of materials, dust and contractors walking in and out of your home all the time for at least a few months. Certain areas of your home might not be accessible. Are you and your family prepared to live through this ordeal?
•Overseeing contractors. This takes a lot of your time and energy supervising contractors and ensuring they are completing the work to a satisfactory standard. Do you have the time to spare?
•Stress levels. Would going through this process cause too much chaos to your life that you aren’t able to handle? Is it likely to strain your relationships and the way you live your life?
•Receive a good price for your property. There might be a peak in the market and you could get a fantastic price on your home that then enables you to buy the house of your dreams.
•Don’t have to deal with renovations. Avoid all the mess and clutter, you could move into a newly renovated home without any extra worries.
•Costs of selling. Take into consideration all the costs of selling including stamp duty, refinance costs, real estate agent’s fees, legal fees, capital gains tax, removalist costs. Are you prepared to pay these?
•Searching for the right house. House hunting requires a lot of time and energy in order for you to find the right place suited to you. Consider if there is a time period between selling and moving into your new home are you prepared to rent or stay with a friend?
•Stresses involved with moving. Packing everything up and relocating can be a very stressful time, do you have the energy to go through this arduous process of packing and unpacking?
So far there has been a lot of information and you may feel more confused now than when you first started reading this article. That’s why the best thing you can do is to contact us at Ray White Seaforth the professionals who can help you make this difficult decision. We can help value your home in the current market and provide you with the current market review of the local area to see if relocating is a possible option on your budget. Alternatively, we can help you see if renovating is a more suitable option or let you know if you are likely to over-capitalise.
Drop in today to have a chat with us to help answer the big question, renovate or relocate?
Call Mark Griffiths on 0422 444 367 or our office on 9948 6069