If you really love the Gold Coast suburb you live in but your home no longer suits your needs, is it time to move or should you renovate your home? As with most important questions, there is no simple answer. At Elanora Realty, we’ve put together a few factors that could help decide whether to renovate or sell.
Renovate or sell
Firstly, do your research. Are there properties in your area and price bracket that meet your needs? Will it be cheaper to sell and move or to renovate?
Assess your needs
Does your home meet your current and future needs? If you are planning on having children—or more children—you may need an extra bedroom or bathroom. If your children are older, will they soon be leaving home? Weigh up what you need against what you would like. If you have a big family a larger kitchen may be more of a priority than a walk-in wardrobe in the master bedroom.
Assess your home
What is the current state of your home? For older properties, you may need to undertake repair works before renovating and this could mean your total costs end up higher than anticipated. If you undertake large-scale renovations to more than half your home then the entire property must comply with current building regulations. This could mean you need to rewire or insulate part or all of the building.
Unexpected costs
Be prepared for those unexpected costs. You can’t budget for every eventuality and as soon as you start knocking down walls or ripping up floors you are likely to find issues you did not anticipate. You will need to address any rotten framework, leaking pipes or bad wiring and that could blow out your budget.
Overcapitalising
Don’t go overboard. It is important to keep your renovations realistic. Many people take out a loan or refinance their existing home loan for renovations. Even if you don’t plan to sell your home in the near future, you don’t want to be out of pocket. Take stock of the house prices in your local area and work out a realistic budget for your home improvements. Remember, you want to add value to your home.
Cost of selling
There are a number of costs associated with selling and buying a home. When you sell a home you need to factor in the real estate agent’s commission, any marketing costs and conveyancing fees. Then, of course, there are the costs associated with buying a new home. These include mortgage lender’s fees, conveyancing fees, valuations, inspections, insurance, stamp duty and moving costs.
As you can see, it can be costly to renovate and to move. The important thing is to assess your circumstances and set a budget.
Contact the team at Elanora Realty to discuss your situation or to arrange a free home appraisal. If you’d like more information on buying or selling your Gold Coast property, download our free property buying guide and/or our free property selling guide.
