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Moving Or Renovating: Comparing Costs

It’s a common situation — a house that has served you great for years can no longer meet your changing needs. This is all too familiar for growing families. Family situations are dynamic. From new members of the family to a new hobby, changes in your life may mean you need to upgrade your home.

This often leads to the question — should you move or renovate? It’s a complex decision and both options bring hassles, so deciding what to do depends on factors such as your financial situation and lifestyle.

What to Consider

There are several things to consider if you are thinking of renovating your current home rather than move to a new one. Do you have a plan for where you want to live and how long? For example, thinking about where you want your kids to go to school, vicinity to healthcare resources for aging family members, etc.

Are you prepared to live in a property while it is being renovated or will you need to make other arrangements? Which option is more financially viable? When it comes to comparing costs, it makes more sense to renovate.

The Cost of Moving

Selling your home and buying another could cost you around 10 per cent of the price of the new home. If you sell a home for $700,000 and buy another for $900,000, you would be looking at close to $90,000 in expenses such as loan fees, agent’s commission, legal fees, stamp duty and removalist fees. That is a huge loss of capital.

The Cost of Renovating

The cost of renovations is usually balanced out by the additional long-term value it adds to your home. The main financial risk is overcapitalising. This is when the money you spend on renovations is more than the increase in value to the property, so you end up not getting a return on what you have spent when you sell.

Tips for Renovating

For a successful renovation, do extensive research and get as much advice as you can. Find out the details of other similar properties nearby and how much they are worth to give you an idea of what your property could be worth. Set a budget and get a building inspection to ensure your property is structurally sound and capable of being renovated. Make changes that are widely appealing, for example, outdoor entertainment areas, plenty of storage and a large, open kitchen.

Quality Home Renovations in Sydney

Contact the leading designers and builders at Extend a Home for expert renovations in Sydney. Our team specialises in ground floor extensions and first floor home additions, with over 80 years of combined experience bringing functional and beautiful home renovation ideas to life. You can count on us to execute your vision for your home.

Call us today on 02 97363344 or contact us online for a free consultation.

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What Our Clients Say

Project: This renovation to this single storey three bedroom home included adding a first floor addition, with 2 bedrooms and study, walk-in robe and bathroom. The exterior cladding was Insulclad with a painted rendered finish, with Stegbar aluminium windows and CSR terracotta roof tiles.

Mr Faulkner

Project: This renovation to this single storey three bedroom home included adding a first floor addition, with 2 bedrooms and study, walk-in robe and bathroom. The exterior cladding was Insulclad with a painted rendered finish, with Stegbar aluminium windows and CSR terracotta roof tiles.

Harvey Cassie

Project: This renovation to this single storey three bedroom home included adding a first floor addition, with 2 bedrooms and study, walk-in robe and bathroom. The exterior cladding was Insulclad with a painted rendered finish, with Stegbar aluminium windows and CSR terracotta roof tiles.

Stuart Donaldson

Project: This renovation to this single storey three bedroom home included adding a first floor addition, with 2 bedrooms and study, walk-in robe and bathroom. The exterior cladding was Insulclad with a painted rendered finish, with Stegbar aluminium windows and CSR terracotta roof tiles.

Tim Crossley