If you’re a young family looking for more space, do you stay put by renovating and extending your existing property or do you sell and upgrade to a bigger home? This is a question I am frequently asked.
The decision is not to be made lightly. Let’s look at some of the pros and cons of upgrading and renovating:
Advantages to Buying a New home:
- A Change: The chance to buy the right home in the right area to meet your family’s needs for the next 20 years or so.
- Bigger and Better: A more substantial property in a better area generally sees better long-term capital growth.
Disadvantages to Buying a New home:
- Costs: You will need to factor in the legal costs, stamp duty and other costs associated with buying a new home. Plus, you may need to pay the selling fees including an agent’s commission for selling your existing property.
- Finding the Right Property in Sydney can be a Mission: Firstly, there is no such thing as a perfect property; you just need to decide whether the positives outweigh the negatives. Secondly, even in the current market, finding the right home in Sydney can be challenging and frustrating. A good buyer’s agent will help you find and secure the right property sooner.
Advantages to Renovating:
- Staying Put: If you love where you live, your friends and local community, your children’s schools and the proximity to amenities and services, you may be keen to find a way to staying put.
- Financial Considerations: If you have been in your home for long enough, you may have built up significant equity which you could use to source the funds for renovating. It could also end up costing significantly less to renovate and extend than it would to sell and buy a new home.
Disadvantages to Renovating:
- Overcapitalizing: Where the cost of your property plus the renovation costs exceed your property’s value. This is a renovator’s worst nightmare.
- Selecting the Right Builder: Choosing a suitable builder can be as difficult as finding a new house and there is always a risk that the builder will deliver defective workmanship.
Once you weigh the options and come to a decision, it’s time to take action. If you choose to upgrade your home in the current property market, you need to pursue the right strategy. By hiring a professional buyer’s agent, you will gain a better grasp of market conditions and the local area as well as social and environmental factors that impact upon the property.
At Buyers Domain we have the knowledge and experience to help you navigate Sydney’s property market. We’ll guide you through the whole process and ensure you’re happy with your purchase. With us, you’ll make smarter decisions and invest with confidence.
Call Nick Viner today on 0405 134 645 for expert advice with your next property purchase.