Choosing to renovate your property OR move to a different location is a very personal decision. Factors involved are completely unique to your circumstances. For some people, the desire to move or renovate can be an emotional one. Maybe you’re attached to your current property or maybe you’re keen for a major change.
While it is good to have some emotional motivation, it is also important to take a step back and look thoroughly at the pros and cons for both sides. This ensures you can come to a decision that you’re comfortable with, both emotionally and financially.
The Costs – Renovation vs. Buying
The costs involved in renovating and moving encompass more than just money spent. It is important to consider the time you invested and the potential for future profit. Renovations come with a time investment for planning, consultation, liaising with builders and tradespeople, reviewing the plans, and keeping on top of everyone’s work. Most importantly is to get council consent if there is any structoral changes made.
It is important to go into a renovation with your eyes open; it can be endlessly rewarding to see your vision created before your eyes, but it can also be maddening to manage a crew of tradespeople while trying to get there!
Are You Over-Capitalising?
Over-capitalisation is when you spend too much money on a property to the point that you would not be able to recoup the investment if you decide to sell. This is a common mistake for homeowners who are attached to their property and want to make continuous improvements.
If you’re considering a renovation, please consider how much the investment would be and whether you will be able to make that money back when it comes time to sell.
Downsizing or Upsizing
In the event that you wish to downsize, moving may be the best solution for you. You can add a minor dwelling / unit onto an existing home but the costs related to building and paying council contribution is huge so it may be more hassle than it is worth. It may also lead to over-capitalising the property’s value.
On the flip side, if you wish to upsize to suit your family’s needs, both extending your home and moving could be viable options. Weigh up the cost of an extension vs. the cost of buying a new home that fits your sizing requirements. Sometimes an extension will distort the layout totally and this may create an unpopular flow when you are ready to sell.
The location of your land is an important part of property ownership. Whether it is living close to the CBD, close to schools, close to work – or strategically looking for properties in areas with projected growth – location plays a big role when deciding to move or renovate a home.
For More Tips….
For free advice from a third person’s perspective get in touch with Wanly via our contact page or phone 027 473 2468. Alternatively, email directly at email@example.com. Her advice is free and asking now can save costly mistakes and point you in the right direction.
Wanly Tsang has more than 10 years’ experience selling property on the North Shore and has consistently been Harcourts Browns Bay’s top sales consultant and one of the top achievers on the North Shore. If you’re looking to sell your property on the Shore, Wanly can give you the best advice that you can trust no matter what your circumstances are.