It’s the question that more than 35% of all respondents to Mortgage Choice’s 2016 Money Survey have been asking themselves because they stated that it was a high priority for them over the next 12 months.
There’s lots of compelling reasons why staying put and adding value to the current home makes sense. Projects such as increasing the available living space for a growing family or revamping old & tired rooms can potentially extend the livability of a home at a lower cost and with less upheaval than selling and moving.
If you’ve got great neighbours, if the kids are settled & happy at school or if you’re heavily involved in the local community or sporting clubs then the thought of moving away can be too traumatic to contemplate so staying put and making improvements to the current home is a logical way to avoid the stress & worry of relocating.
The current robust state of the housing market is another disincentive for selling up. After paying out agent’s commission to sell and stamp duty etc to buy, the outcome may well just be a home of similar age & style with its own limitations and renovating needs.
So, what should you do if you’re one of the 35%?
- 1. Determine the dollars.
Decide on the scope of the work to be undertaken and get a range of quotes and estimates to get a realistic idea of what you’ll be up for financially, regardless of whether you’ll be employing professionals to undertake the work or tackling the project yourself.
- 2. Expect the unexpected.
Assume things will go wrong such as the price of materials being higher than estimated, the expected time frame blowing out, having to move out of home temporarily due to the upheaval being greater than expected.
- 3. Work out how to pay for it.
Once you have a budget you’ll need to work out how you’ll cover the cost. Do you have sufficient cash in an offset account or available redraw on your home loan to cover it? Will you need to increase your loan or completely refinance your current loan to a new product or even a new lender? Here’s where an experienced mortgage broker can be an invaluable resource. They can let you know your borrowing capacity, the most suitable type of loan products for your needs and what information your lender will need to feel confident to approve the funds for you.
- 4. Ask for help.
No-one likes to take advantage of their friends and family, but it is always a good idea to ask for help where possible. Whether you know someone who can source a product discount, or someone who can help with demolition, asking for help from friends and family can reduce the time and money you need to invest in the renovations.
- 5. Keep everything in perspective.
There is no such thing as a stress-free renovation so just remember the reason why you’re doing it... to improve your family’s quality of life. Your relationships with each other are more important than short-term cost blow-outs or extended time-frames.
For more information on renovating and/or your financial advice options, call 4284 5066 and the team at Mortgage Choice Woonona will be happy to help you.