Chances are you’re straight-up bored of the four walls you have been surrounded by for the last 18 months. Yes, you know how lucky you are. You have a warm and cosy place to live when so many don’t. But a person could live in a castle and still, at this point in a global pandemic, think, “If I have to spend one more day looking at this wallpaper or that kitchen …”
So, should you stay, or should you go?
Both have benefits. There is opportunity to add significant value to a house by adding a room or updating the bathrooms and kitchen while buying a new home means you avoid the disruption that major construction work can inflict on daily routines.
Both have downfalls. There is the risk of overcapitalising on a renovation or distancing yourself from a community you’ve grown to love if you move elsewhere.
There are a few common factors to consider, 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 live, 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 thoroughfare and quite noisy. This is where your decision can become difficult … can you soundproof your home? Is that going to be enough? Or maybe you can move elsewhere within your suburb or area? Now is the time to start writing a pros and cons list!
Cost
It’s no secret that renovations are costly, but so is buying and moving to a new home. To help you decide if moving is worth it, calculate the exact budget you feel comfortable spending on your renovation, then get your house valued to see how much you will potentially make from selling. Next, see if you can afford the type of property you aspire to live in and the price range these properties sit within. Once you have included selling costs, stamp duty, and moving costs, you should have a pretty good idea of the cheaper option. You may learn that it is, in fact, more affordable 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 from renovating.
Scope
Scope ties in closely with costs. Suppose your home is a few decades old and needs an extensive renovation. In that case, you need to consider if you will 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. To add to this, if the full scope of the renovation is too costly, will you ultimately be happy with a scaled-down version? Are you happy to compromise? In this case, making the decision to move to a new home may be a far easier and valuable option for you.
Time
A renovation is a considerable commitment timewise. A complete renovation takes months (unfortunately, we cannot speed things up as they do on ‘The Block’) without factoring in any setbacks like extreme weather events. A typical rule of thumb is not to renovate if you plan on moving within the next five years, especially if you plan on spending a considerable amount of money. It would be best to weigh up the expense and investment of a renovation against the cost of buying a new home. Factor in how you plan to live for the next 5-10 years, and your decision should become more apparent.
The more you know, the better your decision and final outcome will be, so take your time, get all the expert advice you can, and you’ll be far better off as a result.
Donna Etchells - McGrath Estate Agents 