Renovate or Buy
Real Estate

Which is the best: Renovate or Buy?

Current buyers’ market conditions may be weakening as a result of the Reserve Bank’s continued cuts in interest rates, but before making the decision to become a homeowner or switch, consider all of your options carefully. And make sure you do the right thing.

There is no doubt that there are great buying opportunities right now with low-interest rates and stable prices, but for some, the renovation may offer more benefits.

There are countless reasons why the current home can no longer meet the homeowner’s needs, including that they need more space, their circumstances have changed, or they just want a change of scenery.

But whatever the reasons, the current uncertainty in national and international economies may make renewal more attractive, so my advice would be to weigh the options, make a list of pros and cons, and see what their potential might be Future needs.

Budget: There are inherent costs associated with both options. Renovation is more susceptible to budget losses, but the hidden and additional costs of buying a new home, like stamp duty, transfer and removals can make it much more expensive. A careful and detailed budget plan will help you weigh the costs involved in both options.

Location: Consider whether you want to continue living in the area, or is there any other place you would rather call home? Also, be aware of the neighbors. For many, relationships are forged with neighbors, and it’s important that if you stay or move, you can see yourself getting along well with your neighbors.

Time: what time limitations do you have? Finding the right property that meets all of your currents and future needs will take time, as will renovation. Often home hunters must compromise in some way, but the home renovator must be able to do exactly what is intended and approved by the proper authorities.

Space: Make sure you have enough space to make the improvements you want if you want to renovate. If you are buying, consider whether you will need to make any additional modifications, either to make sure the new property can meet your current needs, or at some point in the future to accommodate your changing circumstances. Asking an architect or builder to inspect the property with you can be of great benefit.

Also, if you’re looking to renew, it’s easy to let the emotions override the practicalities, so it’s important to make sure you get the right advice to make sure you don’t overcapitalize.

A very basic rule of thumb when renovating is to never spend more than 25 percent of the value of your home. But before you make a final decision, look at the property market and get an appraisal on your home and see the prices of the homes that appeal to you.

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