The pros and cons of relocating or staying and renovating your home
Why renovate your home?
Stay in your preferred suburb
Preserve emotional and sentimental connections
Personalise your home to your heart’s content
Customising your space is one of the most significant benefits of renovating. Having that dream walk-in closet, spacious kids’ playroom or well-equipped kitchen can simplify your life at home, making it more enjoyable while adding value to your property.
Renovating is often an ideal opportunity to identify and fix existing issues around the house, such as outdated insulation, old roofing, or wiring. These updates can provide more energy-efficient, economical and sustainable living spaces.
Boost the value of your property
Extending or renovating your home can significantly increase what it’s worth. A master bedroom revamp, a new granny flat, or the addition of an ensuite can boost your property’s overall market value.
Investing in home renovations is even more lucrative in areas where space is at a premium, yielding higher returns if you plan to rent out or sell your home.
The disadvantages of renovating
Council restrictions
Councils may impose restrictions on development plans that can limit the options for expanding your home. If your home is heritage listed, you’ll need council permission, and may also have to work with professionals such as builders and architects who have experience with heritage properties. This can increase the project’s expenses and sometimes make it take longer to complete. At Spacemaker Home Extensions, we specialise in renovating and extending heritage homes, and pride ourselves on making this process as smooth as possible. Speak with us about how we can help.
Timelines and delays
When choosing a building partner that is inexperienced in planning, working with suppliers and the local council, or scheduling tasks your home improvement project could face delays. These can disrupt your project timeline and create a domino effect that impacts other aspects of your renovation. Unexpected problems can slow the progress and extend the project’s timeframe beyond what was initially planned. Selecting a professional builder who is experienced in extensions and renovations will ensure your project is managed well, with delays kept to a minimum.
Risk of overcapitalising
Overcapitalising occurs when the renovation cost exceeds the amount it adds to your property’s value. While it’s tempting to go all out with premium finishes, first consider whether the cost is justified by how much they’ll add to your home’s sale price and how long you plan to live there. A quality, experienced builder can help you make decisions to avoid overcapitalising, making your renovation project more financially rewarding.
Expect the unexpected
Home renovations can sometimes involve unplanned expenses, so it’s important to factor in a little extra for any surprises that may arise to help keep your project on track.
At Spacemaker, we give our clients a fixed-price quote for extensions and renovations. Our experienced team undertakes a thorough inspection of your home before contracts are signed. This proven process ensures that unforeseen surprises during construction are kept to a minimum, so you know exactly what to expect.
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Why buy a new home and relocate
Make a fresh start
More control over your space
Move in straight away
Potential for profit
In some situations, if your current home has appreciated in value, selling it could provide you with significant financial gain, especially if you are planning to move to a more affordable area. In this situation, relocating to a new area and buying a similar or smaller property gives you the option of using any profits from your sale to invest, buy a new car or take a luxury holiday.
The cons of relocating
Before you start looking for a new home, be aware that moving house involves more than just finding a new place to live. The financial and logistical processes require careful consideration of various factors, including the following:
Hidden costs
Market timing
Pre-sale staging and styling expenses
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Glossary of important terms
Understanding the terms below can help you make an informed decision about whether to buy a new home or renovate.
Amenity
Sought-after features that enhance a property’s appeal and value, such as spacious closets, a swimming pool, scenic views or quick access to local facilities.
Conveyancing
The legal procedure by which property ownership is transferred from the seller to the buyer.
Capital Gains Tax (CGT)
CGT is a tax levied on the profit made from the sale of an investment or commercial property, calculated as the difference between the purchase price and the selling price. It does not apply to primary residences.
Equity
The portion of a property’s value owned outright by the homeowner. It is calculated by subtracting the outstanding loan amount from the current market value.
Overcapitalising
Where the cost of renovating a property exceeds the added value of the improvements, resulting in a financial loss when selling.
Rentvesting
Renting a primary residence in a preferred location while owning an investment property in a different, typically more affordable area.
Stamp Duty
A tax imposed by state or territory governments on property purchases.
Consult with award-winning home building experts in Melbourne
Advice from professionals like estate agents, financial advisors, and reputable home builders can all help with your decision to renovate or relocate. The team at Spacemaker has over 50 years of experience building custom homes and extensions in Melbourne. Find out whether a home renovation with Spacemaker is the best option for you, your family and your lifestyle. Contact us through our website or call us on 03 8873 7800 to speak with a home design consultant today.
*All information correct at time of publication. Any information provided here is of a general nature only. Please do your own research and check the applicable rules and regulations directly with your builder and local council. If in doubt, seek independent professional advice.
