Renovate, Detonate or Relocate???

March 13, 2017
Kathryn Coleman

Costs to consider

When it comes to our home our needs and wants change over time as family grows in numbers and age.  This always poses the question: do you renovate, or do you move?

Whatever you decide, it’s important to weigh up the costs and benefits to each option. To help you understand the costs associated with both options we have reviewed most expenses associated with renovating and moving.


When broken down by stages or tasks, you will realise there are number of different expenses involved in renovating a home, including:

  • Building inspection:  a building inspector is required to check the state of your property and assess if any repairs must be made before renovating.
  • Renovation specialists:  hiring of professional tradesman, design consultants, structural engineers, builders, and architects.
  • Materials: The will be significant costs of attributed to materials. How easy is it for tradespeople to access your property.  This will have an impact on the cost.
  • General renovation costs:  The renovation will also need involve specialists tradesmen including electrican, plumber, painters, and builders. You may be able to save money by doing some things yourself, but you may need to hire a qualified professional such as a plumber or electrician.
  • Lenders Mortgage Insurance: If you are refinancing your home to cover the costs of the renovation and need to borrow more than 80% of the value of your property, you may need to pay Lenders Mortgage Insurance.
  • Miscellaneous expenses: Prepare for unexpected costs involved with renovations such as council fees, levies, permits, taxes and GST.


Similar to renovating, moving into a new home also comes with a range of expenses, including:

  • Real estate fees: Before you can buy a home and move into it, you may need to sell your current property. If that’s the case, and you use real estate agent some of your net cash will be paid as commission. Agents typically charge a commission rate, which ranges between 1% and 3%, on the sale price of the property. There will be other marketing costs that may or may not be included in the agent’s package – it pays to ask and negotiate.
  • Repairs: Depending on the condition of your property, you might need to do some tidy up and repairs before listing the home for sale. An interior stylist to make your home look beautiful and give it that display home look
  • Removalist: Moving is a big job and many chose to pay a company to take on the job. A removalist can cost up to $500 a day.
  • Pest and building inspections:  Before buying a new home, smart buyers will conduct pest and building inspections to ensure the new property has no structural damage. Depending on which company you use, pest and building inspections can cost you as much as $500.
  • Stamp duty: When you buy a property, you may need to pay stamp duty on the purchase. The amount you will need to pay will differ depending on where you buy and how much you spend. Your mortgage broker can tell you exactly how much your stamp duty fee will be.
  • Legal costs: Enlist the help of a solicitor or conveyancer. Legal fees can set you back anywhere between $1,000 and $3,000 – depending on the company you use.
  • Loan application fees: When you buy property, you may need to take out a mortgage to finance the purchase. If this is the case, you may be required to pay a loan establishment fee. This fee will vary depending on the lender you choose.
  • Title insurance and Registration: During the settlement period, you’ll be required to pay for title insurance to protect you from any claims made against the title of your property. In addition, you’ll be required to pay to register your title with the state government.
  • Lenders Mortgage Insurance: Depending on how much you’re borrowing, you may be required to pay Lenders Mortgage Insurance. This insurance protects your lender (not you) in the event that you default on your loan.

How can Mortgage Choice help?

George Cremona at Wynnum can talk you through all of the expenses associated with moving house and/or renovating your home.

While it is ultimately your decision whether to renovate or move, it’s always a good idea to have a good understanding of the costs associated with both options before making your final decision.

Call us today for your obligation free review

Tags: Mortgage BrokerRenovatingHome

Posted in: Renovating

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