Renovate or Detonate

//Renovate or Detonate
Renovate or Detonate2016-12-03T14:13:12+00:00

……no Renovate…..there should be no question

The question of whether to “detonate” is a question many homeowners have to face – particularly in view of the endless marketing of “volume builders” to do so….and the longer they ponder this prospect the harder the answer appears to be. In truth, it’s a matter of weighing up every circumstance on its merits – there’s no easy answer as every situation is unique.

Families who live in the right place, but potentially 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?

On the face of it this is the easiest option to consider, but potentially the most costly and without intimate knowledge of the building’s condition or longer term ability to satisfy needs. It may require a further extension on a mortgage – so loan approval needs to be sought from the financial institution.

A sideways thought is to consider relocating and renovating in a regional town – where site size, entry level costs and lifestyle can appear attractive – and renting near your place of work.

This could set up life for retirement well ahead of it being a reactive move.

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 established home does not attract capital gains tax when it is sold; people get to enjoy a better lifestyle; and they could in turn consider creating a self contained living area for generational living/rent.