To Renovate or To Move
So you have decided that you need more space. Maybe an extra bedroom, extra lounge room, more storage or a new kitchen and bathroom. What do you need to take into consideration when considering to renovate or move?
You've decided you want to go to the next level. Adding a second storey or an extension depending on size will take between 3 and 6 months. The costs is outlined in your contract and more often than not you can live in your home while the work is being carried out. Budgeting is easy and by sectioning off areas of the house disturbance is minimal. In the end you get the house you have always wanted in the area you love.
Moving is said to be the second most stressful event next to divorce. Constantly having the house in pristine condition for potential buyers can be very stressful while working, running around after children and helping elderly parents. It can be chaotic and time consuming and when you look at the nitty gritty it can be very expensive. This is mostly due to stamp duty, the tax that homeowners are slotted with every time they buy a property. Stamp duty isn't the only cost to consider when trading up, you also have the cost to sell your property.
Most often if you are thinking of renovating or moving, your home may be well lived in and a bit tired. To obtain the best price for your house you are probably looking at doing what might seem as minor things to market your home at its most appealing. A lick of paint can costs around $10,000 depending on the size of your house, new carpet $5,000, gardening $5,000, change a leaky tap, electrical certificates are expected these days so an electrician is needed to check your RCD's and smoke alarms etc. Then you have Real Estate Agents fee of around 2% plus marketing costs of aprox $5,000. So if you are hoping to sell your home for say $1m approximate cost of selling could come to around $45,000 for a 3 month sales campaign. The average selling time in Perth (at the time of writing this) in the Western Suburbs is around 4 months, so there will be an extra cost to continue marketing on all the portals.
The other costs to consider are, structural and pest inspection fees which start at around $220 and can be up to $600, search fees, settlement fees around $1,200, removalist fees of around $1,000, changing your internet .....and the list goes on.
According to Domain a typical homeowner considering upgrading is looking at a bill of over around $70,000.00
Taking into consideration you are looking for more room, you next house purchase is likely to be more that you sell your current home for. So its well worth while to speak to Darren to find out how much it will cost to stay and renovate and put the cost of selling towards you new space.