Deciding whether it makes more money sense to renovate or move house is not easy. Nostalgia can always creep in when it comes to the family home, and while there are no sure ways to save money when renovating, the best advice is to budget and review your plan constantly. Otherwise, here are our some other factors consider when deciding whether to move home or renovate your existing house.

  • Undertake a ‘cost-benefit analysis’ of renovations of your current home. With buying the costs of legals, stamp duty and of course moving all should be considered. Renovation costs can only be estimated, and should include council approval costs plus a contingency fund.
  • Don’t blow out a renovation budget making your home too specific for your own needs. Let’s face it, no-one knows what is around the corner. And the biggest (and most costly) real estate mistake is designing a home just for you that no-one likes. It won’t sell and you will not make any money.
  • Minor or major renovation? Consider whether you will be able to live in your home during the renovation, or whether you will need to find (and pay for) another place to live during this time. Some major renovations can take up to a year
  • Is your current location second-to-none? If buyers can buy your home in another, better, location, they will.
  • Cutting corners with your building work, especially plumbing and electrical, will never save you money long-term. When you sell, all of these will be picked up in the building inspection and cost you big money. Or if you continue to live in the home, the dodgy workmanship will eventually cost you in repairs. Either way, do it right the first time.
  • Consider if a renovation of the scale you are considering would be over-capitalising on your property. If in doubt, talk to a trusted local real estate agent.
  • Use your financial common sense and consider whether the total amount you would sink into a renovation would be better off put towards the purchase of your next property that has what you are looking for.
  • Do you have the time to deal with the stress and hassle of a renovation?
  • Is your current home suited for renovation? Get advice before embarking on your project.
  • What are your expectations? Be realistic about how much money you expect to make from your project, and of course what you expect to spend.