To renovate or buy?

There are usually a couple of different camps when it comes to deciding whether to renovate or relocate to a more suitable property when the needs of the occupants change, for example, when more space is needed to accommodate growing families.

While some people like to be able to design and construct a property to their exact specifications, others prefer to move to a different home that is already suitable, with no, or minimal improvements needed.

There are certainly advantages and drawbacks involved with either method of pursuing your ideal home, and the best avenue will ultimately depend upon your individual circumstances, budget and time constraints.

Location
Location is one of the most important considerations when it comes to deciding upon where to live or have an investment property. Should you currently reside in a property that is ideally located with no purchase options that are in similarly desired locations, you may consider renovating so that the property itself becomes better suited to your needs.

Time
While the property sale and purchase process can take time, so too can renovations – many of which can become drawn out if not managed diligently or if the renovation is a do-it-yourself project occurring concurrently with the owners' everyday jobs and routine. It is worth setting a timeframe within which you need your changes to be finished by, and considering which option will allow you to achieve this.

Budget considerations
Moving and renovating both have expenses which need to be taken into account. Purchasing an alternative property will involve stamp duty and other legal costs, as well as the cost of the property itself – which may be more than the price you received when selling your previous property, particularly if your new home is larger.

Renovating too, however, can be pricey, with the preparation of various council submissions and application fees, and the cost of labour and materials. To ensure you are making the most cost effective decision for your situation, careful budgets should be drawn up before making a decision, with room for contingencies should costs increase unexpectedly.

Room to make improvements
Before renovating, professional opinion must be sought about your intended renovations and whether the size of your property (both the physical building and block size) will accommodate them easily. A renovation may not be easy, or possible, if there is not adequate space.

While there is a lot that can be said for renovating a property to your exact wants and needs, it may also be preferable to move straight in to a home that requires no further work. The choice of whether to renovate a property or move elsewhere when your requirements/preferences change is very much a personal decision and will depend upon your individual circumstances.


Disclaimer: The opinions posted within this blog are those of the writer and do not necessarily reflect the views of CENTURY 21 Australia, others employed by CENTURY 21 Australia or the organisations with which the network is affiliated. The author takes full responsibility for his opinions and does not hold CENTURY 21 or any third party responsible for anything in the posted content. The author freely admits that his views may not be the same as those of his colleagues, or third parties associated with the CENTURY 21 Australia network.