It is a
question all homeowners have to face at some point and there's no easy answer
as every situation is unique.
Families who
live in the right place, but in the wrong house have found a solution in
renovating.
"Prior
to finding the right house, home buyers seek out neighbourhoods for qualities
they can check off like items on a wish list. They consciously select areas
close to work, near schools, public transport services, shopping facilities,
parks, restaurants and intend to have a long involvement in the community. If
special needs are required, they renovate.
"Building
has been expensive over the last few years however, with the current economic
climate now and relatively low interest rates, renovation or building a new
home is an attractive financial proposition."
Of those
people who do move, they don't move far, often remaining in the community or a
neighbouring area. "Moving is an expensive exercise with moving costs up
to $50,000 including loan fees, agent fees, removalist fees, and stamp duty
costs. These are expensive fees and charges where the funds could be put to
better use paying for renovating your home to improve your lifestyle."
The Three
Big Questions
Relocate?
The easiest option to consider, but potentially the most costly. This may
require a further extension on a mortgage thus loan approval needs to be sought
from the financial institution.
Detonate?
Knock it down provided you've received council approval. Pay a visit to display
home villages or peruse standard house plans, but keep in mind, it's rare to
find a house that totally suits your needs and taste (and alterations to
standard plans can be disproportionately costly).
Renovate?
If you want to maximise your property's potential and you are not sure if it
can be modified, whether it's feasible or within reach of your budget,
Renovation has a threefold advantage. Investment in the family home does not
attract capital gains tax when it is sold; people get to enjoy a better
lifestyle; and they could turn part of their home into a future revenue stream
by creating a self contained living area for rent.