Maybe your house needs an upgrade, or maybe it no longer suits your needs. If this is the case, it’s time for you to decide whether you should renovate or relocate. Before you choose, be aware of the potential costs and requirements. To make your decision easier, we’ve broken it down for you in two parts.

Renovate or relocate?

Renovation

Renovating your house isn’t just about making it suit your tastes and likings. You must remember that at some point in the future, you will likely sell your property and move elsewhere, so keep in mind that your renovations will affect the sale price.

What you need to know

• Renovating your property can potentially add between 10 and 15% to its original value if you sell it after 5 years.
• If you do plan to sell your renovated property in the future, then you must plan and execute your renovations carefully to ensure an increase in sale price. A proactive renovation will guarantee your property meets the interests of prospective buyers.
• Despite the high cost, renovating can help you avoid the stamp duty and legal fees that come with selling and purchasing a new property.
• By renovating instead of relocating, you can ensure that your home meets your needs.
• You may end up spending more money renovating your house than you will recover if you sold it instead.

Time and costs

The time and costs will vary depending on the scope of the work. For example, replacing the bedroom’s carpet with floorboards can take less than a day, but adding an ensuite will take longer than a week. Here’s what you can expect:

• Kitchen: 2-9 weeks, $10,000-$45,000
• Bathroom: 1-3 weeks, $10,000-$35,000
• Living room: less than 1 week, $10,000-$15,000
• Bedrooms: less than 1 week, $2,000-$35,000
• Cost of accommodation during the renovations.

Maybe your house needs an upgrade, or maybe it no longer suits your needs. If this is the case, it’s time for you to decide whether you should renovate or relocate. Before you choose, be aware of the potential costs and requirements. To make your decision easier, we’ve broken it down for you in two parts.

Your housing needs can change over time. There may come a point where you must decide between renovating or relocating. Both options have their advantages and disadvantages, so it’s important that you gather as much information as possible before you make a final decision.

Relocation

There are some problems that can’t be solved through renovating. If you have read Part 1: Renovation and believe it isn’t for you, or it won’t solve your needs, then maybe it is time for you to sell your home and relocate. However, doing so can be costly and time-consuming.

What you need to know

  • Moving to a new area can better suit the needs of your lifestyle.
  • If your house is rundown or in desperate want of an upgrade, it may be a better option to relocate to a property with better structural integrity.
  • Even if you’ve already got another property, or you’ve got some properties in mind, you still need to prepare your house for the market. To increase your property’s market value, you may need to conduct structural repairs or employ a cleaning service.
  • If you’ve chosen to relocate to a new area, you must consider whether this move will offer you better capital increases and a positive price growth.
  • When you relocate, you must consider the costs of your new property, and keep in mind the taxes that come with selling a property.
  • You’ll need to put together a plan for moving. This may require arranging rubbish removal, house cleaning and hiring a truck.

Costs

The cost of relocating will depend on the location and size of your property. Generally, this is what you can expect to pay:

  • Conveyancing fee: $900-$2,200
  • Agent commission: 2-4% of the selling price
  • Inspection fee: $200-$1,000
  • Stamp duty: upwards of $10,000
  • Moving service: $100-$3,500
  • House cleaning: $20-25 per hour

Choosing between renovating and relocating is tough and complex. The more you know about the benefits and pitfalls of both options, the better your decision will be. Take your time and chat with a SmartB service provider about it. They are always happy to help.