It’s a common dilemma for many homeowners when their family expands and they start running out of room – to sell and buy a bigger place or renovate what’s already there?
It’s a big choice and either option involves plenty of work, planning, hassle and lifestyle disruption (but there are obviously some perks too).
Read on to find out whether moving or renovating will be the best choice for you.
The general considerations
Before you decide on one or the other, here is a list of factors you should take into account.
1. Your future family and housing needs
First of all, it’s important to consider your current, short-term future and long-term future needs.
Are you planning on eventually expanding your family even further meaning even more room will be needed? Or will kids start to move out in a few years and leave lots of empty space in a big house?
Such considerations are completely individual but should help you determine what the best option might be.
2. Your current neighbourhood
Are you happy with your current neighbourhood?
If it doesn’t have any of the things you might want in a home – such as safety or proximity to schools, shops, family, transport or community facilities – then it might be time to move to a new home and an area that’s better suited to your family’s needs.
3. The work involved, your current home and your budget
You should take the time to carefully work out and compare the costs of each option.
Be sure to accurately determine the costs of any renovation work required, which can be easy to misjudge.
Depending on the age and current condition of your home, you may be surprised to learn that the work involved in updating your house might set you back even more than buying a new place, especially if it’s an older-style house.
Pros and cons of moving somewhere new
Let’s say you’re browsing properties for sale on Soho and are leaning towards buying a new place. Here are some factors you may have overlooked.
- A major perk of moving is that you don’t have to worry about living through the work and mess of a renovation, and can move straight into your new home instead.
- If it’s a newer build than your previous home you may find less ongoing expenses for repairs as structures and appliances should generally be newer and in better working condition.
- The associated costs of buying a new house may be more than you initially think. It’s not just the difference in the property prices that may set you back; you’ll also need to take into account agent fees and commission, legal fees, stamp duty, removalist costs, stamp duty, home loan fees, refinancing fees and advertising fees.
- You’ll have to adjust to a new neighbourhood, neighbours and lifestyle if moving to a different suburb.
- While it could be either a pro or con, consider whether it is a good time in the market to sell.
Pros and cons of renovating your current home
Let’s say you stay where you are and decide to renovate to make more room for your expanding family. Here’s what you should think about first:
- Beware of overcapitalising. That is, when the costs of renovating outweigh the value it actually adds to your property. This is perhaps the biggest consideration when remodelling your existing home. You should seek the advice of an agent to get an idea of how much your house is worth, how much other properties in your area are worth and how much you can spend to bring it up to this level before you overcapitalise.
- You should check your local council planning laws to see if the renovations you want to carry out are actually feasible and comply with guidelines.
- You should also get a building inspection to make sure your house is structurally sound for the renovations you would like to carry out.
- Research a good builder and check references – you don’t want to be stuck with a dodgy builder who doesn’t complete tasks to a high standard, drags jobs out or doesn’t complete them at all.
- If it’s safe to do so, are you happy to live in the house while work is being completed? If not, have you factored in the cost and upheaval of moving into temporary accommodation?
- Budget carefully and allow for contingencies. It’s easy for renovation costs to go beyond your original expectations and you should always have a buffer should things not to go plan. Read more on how to budget for your renovation.
- You may be able to save some money if you have the skills to complete some of the work yourself. It’s not recommended you attempt to do this if you don’t have the necessary skills however, as this could cost you much more in the long run.
- Will the renovations you are planning suit the needs of your area? It’s important to consider this for when it’s time to sell one day. For instance, would your family renovation be suitable in an inner-city area with no nearby schools or parks?
- Renovating can be notoriously stressful, particularly if it’s your first time undergoing a large scale remodel. Consider the toll it can place on your daily life and relationships.
So should you move or renovate?
Whether you decide to move or renovate when your family is expanding is a personal decision that depends on your individual circumstances and needs. Moving to a larger home may be the best option if you need more space and cannot expand your current home.
However, if you love your current suburb and location, and have the budget, renovating your home may be the best option.
It’s important to weigh the pros and cons of both options, and also to consider things like costs, time, and the overall impact on your family before making a decision.
Ultimately, the most important thing is to find a solution that works for your family and provides the space and comfort you need to grow and thrive.
