Is your property bursting at the seams? If your property no longer meets your family’s needs, you may be considering whether to renovate or relocate.
Consider the following…
Your current and future needs
Think about where you’re at now, and where you plan to be in five years time. Write down the ‘must-haves’ for your home versus the ‘nice-to-haves’. You might really need that second bathroom for your teenage children, but a walk-in wardrobe to the master bedroom might be a lower priority.
The condition of your property
You should carefully research and cost-out your renovation project before starting. It’s important to look beyond the floor plan and ask the experts to assess all of the ‘not so obvious elements’ like wiring and plumbing changes. Without this, a seemingly straightforward project could end up costing a lot more than you expect.
Put simply, overcapitalising is where you spend more money on your house than you are likely to recoup if you had to sell it tomorrow. Say you bought your house for $450,000 and then spent $150,000 renovating it. If the median price for similar houses in your area is only $550,000 and you have to sell for whatever reason, you could be out of pocket $50,000. Overcapitalising isn’t so much of an issue if you plan to live in your renovated property medium to long term, as values will increase and eventually exceed your investment.
Moving versus staying
You should compare the benefits of remaining where you are versus moving to a new street or suburb. Often the decision comes down to which costs less. Remember to factor in your time too, as time spent renovating is often time you are not earning money.
Do your research and ask the experts
Remember, it’s important to speak to the experts and get detailed cost information (and always get more than one quote for the job).
At Harcourts, we can help you with your property’s current value and also give you an estimate on what you would likely get following renovation in the current market.
Harcourts – The Property People are your local real estate experts. Call 4628 7444 for advice today.