Should you sell or renovate?Tom Uhlich
One of the questions most homeowners ask themselves is should we renovate or sell? Should we spend $50k, $100k or even $300k on a major renovation or sell up now and buy a home that has everything we want? This could be due to a growing family or you are ready to move on from your first home into your dream home?
Is Renovation the answer?
Once you start looking at houses you may find the houses you like are out of your budget or far away from your current suburb, so renovating your current house could be the way to go. So many people love the area they are in and with children set up in local schools it’s difficult to move.
Once you factor in Stamp Duty, Legal & Agents fees, selling, then buying can be expensive, you will easily throw away $100,000 on a $1mil home! Imagine the renovation you could do on your home for $100,000?
Before we beat the drum about renovating it can have its issues. Not many renovations go to plan, taking longer than expected and usually cost 5-10% more than the initial budget. If you are living in the home during the renovation you have the inconvenience of builders coming and going and expect plenty of mess and noise. If you are not living there you may have the additional cost of rent or live with family (which has its own fun issues).
Well worth talking to an architect and an experienced real estate agent to get ideas on what you should do. You don’t want to over capitalise. No point in spending $100k on renovations which will only see an increase in the value of the home of $50,000. Unless of course you are in it for the long haul and can see yourself staying there for 10 years post-renovation.
Here are some great tips from the website www.letsbemates.com.au
- Install some new lighting
Lighting is another factor that contributes a lot to the ambiance of a room. Lucky for you, lighting is also a very affordable factor to change. You can opt for a brighter or dimmer setting depending on how you want the room to feel.
Colour is another option when it comes to changing the lighting in a room. Small colour accents can help give a room a cooler or warmer feel depending on the shade.
- Update any room with a fresh coat of paint
One of the most tried and true budget home renovations is a fresh coat of paint. This is an easy way to help to transform the feeling and ambiance of any room in the house without spending a fortune on extra furniture or add-ons. Paint is fairly inexpensive and is simple to apply. This ensures that money isn’t wasted hiring professionals to conduct renovations. A different colour paint can help change any room without breaking the bank.
- Add minimalist storage ideas
Storage is an issue in most households. Not only do you have too many things to store, but storing them in a nice way is important as well. This is when investing in some minimalistic storage is a good idea. Small cubby holes and hanging racks are a few great ideas to make storing clothing and other smaller things a breeze. These storage devices can be added to closets and empty spaces throughout the house.
Or should you move?
After you have done all your research it looks like its better to move…or is it?
We covered this off earlier, but you need to get your head around the costs of selling and buying. Also, do you buy a more expensive property in your area or move further out and pay similar to what you sell for? Will you get better growth in the new area? Has the house got more potential for growth? Do you care about growth or is lifestyle more important. ie Maybe you can’t put a pool in your current home but the new one has a pool?
So what is the best option for you?
I guess that’s a personal choice and everyone is different.
End of the day, you need to do your research. Get a piece of paper with two columns and start writing the pros and cons of each. Contact Boss Money and we can help you with all the costs.
Once you do that it will crystalise which option is best for you.
For a free consultation contact Boss Money today
0476 111 000