Renovate Or Move – 4 Things to Consider | Donna Etchells

A conundrum that haunts many, do you move to a new house, or stay and renovate to create the home you want?

There are a few common factors that affect one’s decision on this, from location, costs, scope and time. Let’s delve deeper into some of these reasons to help you make the decision, once and for all.

Location

Perhaps the biggest make or break when deciding to move or renovate is location. People find that they love where they are living, but not the house they’re living in, so, what do they do? Consider why you love your current location, is it close to transport options, schools, a hospital, work, your favourite restaurant or lifestyle amenities? If you said yes to all of those, then maybe you’re better off staying. Perhaps you love everything about where you live, except the fact that your street is a main thoroughfare and quite noisy. This is where your decision can become difficult as you may consider renovations to make your home more sound-proof, or, maybe you can move elsewhere within your suburb or area. We suggest you write the pros and cons of your current location and go from there.

Costs

It’s no secret that renovations are costly, but so is buying and moving to a new house. To help you decide if moving is worth it, calculate the exact budget you feel comfortable spending on your renovation, then, get your house valuated to see how much you will potentially make from selling. Next, see if you can afford the property you are aspiring to live in and the price range these properties sit in. Once you have included selling costs, stamp duty and moving costs, you should have a pretty good idea of what the cheaper option will be. You may learn that it is in-fact cheaper to renovate your existing property rather than moving, or, just the opposite!

We suggest you consult a trusted real estate agent to determine if you will get the same value from moving as you will renovating.

Scope

Scope ties in closely with costs, if your home is a few decades old and needs an extensive renovation, you need to consider if you will be able to tolerate living elsewhere for a time, and then living in an incomplete home whilst the finishing touches are being done. This may not be feasible for a family with young children, or someone who has a high-stress job. To add to this, if the full scope of the renovation is too costly, will you ultimately be happy with a scaled-down version? In this case, moving to a new home may be a far easier and valuable option for you.

Time

A renovation is a huge commitment timewise. A full renovation takes months (unfortunately we cannot speed things up like on ‘The Block’) and that is without factoring in any set-backs like extreme weather events. A typical rule of thumb is to not renovate if you plan on moving within the next 5 years, especially if you plan on spending a considerable amount of money. You should weigh up the expense and investment of a renovation against the cost of buying a new home. Factor in this with how you plan to live for the next 5-10 years and your decision should become clearer.