There comes a time in the life of every family when the question is asked – should we renovate or upsize? The home you had when your first child was born may not be big enough to comfortably live with a bigger family. Naturally, the hard task of deciding what to do pops up. Here are a few things to consider:
Buying a new home
- Do your research and make sure you have a realistic idea of how much you’re likely to make from the sale of your existing home.
- Revisit your budget. If you’re going to increase the size of your loan to buy a bigger home then make sure you have worked out where the money is coming from and factor in possible rate rises.
- Take costs into account. This includes things like stamp duty, agent fees and moving fees. If It’s a bigger home, your running costs like electricity, gas and rates might be higher.
- Do your suburb research. School zones might be different and life might be more expensive (or cheaper) in some areas.
Renovating
- Get a quote from at least three builders or, if you’re doing the majority of the work yourself, cost out every single part of the renovation so there are no surprises.
- Keep your eyes out for good renovations in your area and contact the builder.
- Check your local council’s regulations regarding home renovations. You’ll probably be required to consult with your local area, so have a chat with your neighbours and get them on the side.
- Factor in the cost involved sketches, technical drawings and plans to be drawn up.
- There’s a real chance of going over budget so factor in a contingency. Do the maths on whether the whole cost (including contingency) stacks up against buying a new home.
- Renovations are incredibly disruptive, especially for children’s routines. Make sure you are well organised and if you can offload any extra furniture while the renos are taking place to create extra space.
- Talk to your mortgage broker about freeing up the equity in your home. You may have access to more than you think.
