Should I move or renovate? It’s a conversation many of us have and for many reasons, so if you’re asking yourself if you should renovate or simply sell and move on there are a few things to consider.
There are a number of factors to consider for both. The right answer for you will depend on why you’re needing to make a change and what it is you’re wanting to get out of your property.
If you’re looking to renovate, make sure you fully understand all the impacts it may have on your life and your finances – especially when compared with moving.
If you’re happy with where you live, renovating means you’ll stay in the same place. You can of course try to buy another property close by, this may limit your options – and may even cost you more
- You will avoid the costs that come with buying a home such as stamp duty, legal fees, registration and real estate agent fees (Buying cost calculator and Selling cost calculator)
- You may increase your property’s value with the renovations. And you don’t necessarily need to renovate on a big scale – even small changes can make a big difference
- You can avoid the extreme stress that moving can bring
- If you’re not completely happy with where you live, no amount of renovations is going to change this
- It can be easy to underestimate the cost and time involved in renovating. Make sure you’re across all the necessary details and have both a financial and time buffer in case things don’t go to plan
- You may not be able to carry out all the changes you want to make to your property due to its current condition. A building and pest inspection can help you make sure you won’t be stopped by things like dry rot and white ants
- You may have to live in another property while the renovations take place
- You may need council approval and building permits
Funding a renovation
If you decide that renovation is right for you, there are a few ways you can fund it. No matter which option you choose, the more you’re able to save upfront before starting your renovations, the more secure your financial situation is likely to be once they’re under way.
Your options include:
- Save the entire amount
- Refinance your home loan
- Top up your home loan
- Access the equity you’ve built up in your home loan
- Take out a personal loan