Is it best to renovate your existing property, or sell and buy again? This is a common dilemma faced by many homeowners. After a while, your new home is not so new, or perhaps it just was never really your style. So, you’re faced with the question of spending money, time and energy to renovate, or sell, and buy again.
Currently, it’s a seller’s market; steady price rises, good growth, low interest rates, and a FOMO (fear of missing out) is pushing up property prices and demand. But does this mean selling your home is the right decision for you? Here are some of factors to consider when selling your home:
- Preparing your home to sell (possible repairs and upgrades to attract buyers)
- Real estate agent fees and marketing costs
- Conveyancing and legal fees
- Loans fees
- Moving or storage costs
- Capital Gains tax
And, if you choose to buy another property again, you’ll be up for some of the same costs plus items such as stamp duty and possible efinancing costs.
In some cases, homeowners are opting to reinvest in their home, and renovate as required to suit their lifestyle needs. In the long-term, this additional expenditure can be recouped, provided you don’t over capitalize for your area. Renovating costs can include:
- Professional fees for architect, drafting, surveyors, and engineers
- Council and certification approval fees
- Building contract for construction, services, and new materials
- Temporary relocation costs, especially if it’s a full renovation, you may need to vacant your home for weeks or months and store your belongings
- Costs for new furnishing
- Budget blowouts can occur for unforeseen problems found after demolition begins such as termite damage, wood rot, or asbestos removal.
Regardless of what you choose to do, always do your research and check the fine print in contracts to ensure you know exactly what is involved before committing.
Recently, our Home Loan Specialist Team had the privilege of working with homeowners Rebecca and Kile who have chosen to renovate their home in Brisbane. The renovation project will involve lifting the house and moving, to build underneath with additional rooms including, new kitchen with dining and living area, laundry and bathroom, bedroom and study area, staircase to new upper level, and alfresco and patio area.
Working with Home Loan Specialist Julie Rashleigh, the couple has secured a construction loan for the renovation. This type of loan is ‘interest only’ whilst loan is being progressively drawn down in alignment with the progress stages of the renovation.
We’re very excited for Rebecca and Kile and can’t wait to see the progress on their newly renovated home.
If you’re thinking of renovating your home, or building a new home, talk to our team about what’s involved in a construction loan.
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