This is always a hotly debated topic, with good points on both sides and many options to consider.
A. do a major renovation and try and live in the house at the same time?
B. do a major renovation and move out during the reno paying rent?
C. knock down your existing home and build a new one?
D. buy a new home or build?
E. buy an existing home that doesn’t need renovations?
Staying in your current location may be your preferred option. Being close to work, schools, family and friends so options A, B or C may be the best choice for some.
For families that are desperate for more space, bigger yards options E or F may be considered.
One of the biggest pitfalls people fall into is overcapitalising, whether on a renovation or a new build.
It is important to do your homework.
Look at your street and suburb and what is the average price in the street. Look at the age and style of the homes in your street and think long term. If you knock your old home down and build a shiny new home in a street of weatherboard homes it may not be a wise investment.
You can contact us for a free property report on your home.
As much as we get emotionally attached to our homes they are still one of the biggest financial investments we make and it is worth spending some time considering the big picture.
It is worth considering all the fees of both options.
If your home was worth $600K and you were to sell and purchase at $800K you would be looking at agents fees of approx. 2% = $12 000 to sell and stamp duty on your purchase of $24 320 with other costs you would be spending in excess of $40 000 on top of the extra $200 000 difference in home value.
If you spent less than $240 000 on a renovation you might be quite pleased with the results and still be ahead, financially.
It is important to also consider your finances; are they in a good position for a change – whatever direction you choose.
Ensuring your home loan has the right features to allow for change is also a good starting point. For example, breaking a fixed loans to sell a home can come with added costs.
Using a line of credit for renovations is a handy option and eliminates the need for your lender to carry out inspections during build.
If you are looking at moving up or moving on contact us early to help you with your maths homework.
Call today on 5559 2563 or drop into our office conveniently located only 5 minutes from Robina Town centre in Bell Central in Mudgeeraba, Gold Coast.