Renovate or Relocate?
The decision to renovate or relocate can sometimes feel like an overwhelming and daunting choice. There are many things you must consider and weigh into your decision before you make a final choice. Let’s take a look at some of these factors that may help you decide which decision is a better and more cost-effective choice for you and your family.
A common mistake people make while weighing the relocation option is forgetting to take into account all of the associated fees and costs. Unfortunately, some people only become aware of these fees after they have begun the moving process.
- Stamp duty
- Refinancing fees
- Solicitor and conveyancing fees
- Real estate agent fees
- Moving and storage fees if necessary
Stamp Duty is now payable even if it is your primary residence. The average property value of a home in Brisbane is around $600,000. This means that the Stamp Duty payable on this property would be around $14,800. In addition to this, you will have to pay a 2.5% real estate fee on your property value. For the average property in Brisbane, this will be another $15,000. You’re looking at almost $30,000 in fees without even considering conveyancing and moving costs.
Here is what $30,000 can buy you with a renovation…
A recent Housing Industry Association study showed the average cost of a full kitchen renovation was $22,500. This means that those relocation fees would be enough for a brand new kitchen with almost $8000 left over for other renovations. If you’re happy with your kitchen but are looking for more space, $30,000 would go a long way towards extending and expanding your home size.
Here are some things to take into consideration when deciding to extend or renovate your home.
- If the renovation impacts a large area of your home, you may need to look into temporary storage for your furniture.
- Will you still be able to live in your home during the renovation? Consult your builder for a definitive answer on this. 80% of extensions and renovations are completed with the residents able to stay living in their home the entire time.
- Make sure to check with your local authority to ensure that the proposed work will be approved.
The bottom line is that analyzing costs and fees and consulting with a building professional before making a decision is advised. Moving can be a lot more expensive and require more work than you may have time to do (even if you hire help). Renovating can be a great option, but you need to make sure that it will be approved by the local authorities and that you are logistic we prepared for the improvements.