You may live in the perfect spot for your lifestyle, friends, neighbours and family, so there is no “right” answer to this question. You’ll need to weigh up all your options and FS Architects recommend that you get good advice, perhaps even exploring each feasibility without committing too much, so that you can make a learned decision that assists you to generate wealth and well being. We understand that wise decisions can take time.
The article below sets it out in principle for you, though seems to be weighted on the side of renovating. In our opinion, some homes have done a good job and are at the end of their lifecycle, and really ought be replaced by you, or the next person. Whatever your choices, we are here to assist.
*Article below is copyright to Archicentre
It is a question all homeowners have to face at some point and there’s no easy answer as every situation is unique.
Families who live in the right place, but in the wrong house have found a solution in renovating.
“Prior to finding the right house, home buyers seek out neighbourhoods for qualities they can check off like items on a wish list. They consciously select areas close to work, near schools, public transport services, shopping facilities, parks, restaurants and intend to have a long involvement in the community. If special needs are required, they renovate.
“Building has been expensive over the last few years however, with the current economic climate now and relatively low interest rates, renovation or building a new home is an attractive financial proposition.”
Of those people who do move, they don’t move far, often remaining in the community or a neighbouring area. “Moving is an expensive exercise with moving costs up to $50,000 including loan fees, agent fees, removalist fees, and stamp duty costs. These are expensive fees and charges where the funds could be put to better use paying for renovating your home to improve your lifestyle.”
The Three Big Questions
The easiest option to consider, but potentially the most costly. This may require a further extension on a mortgage thus loan approval needs to be sought from the financial institution.
Knock Down and re-build?
Knock it down provided you’ve received council approval. Pay a visit to display home villages or peruse standard house plans, but keep in mind, it’s rare to find a house that totally suits your needs and taste (and alterations to standard plans can be disproportionately costly).
If you want to maximise your property’s potential and you are not sure if it can be modified, whether it’s feasible or within reach of your budget, Renovation has a threefold advantage. Investment in the family home does not attract capital gains tax when it is sold; people get to enjoy a better lifestyle; and they could turn part of their home into a future revenue stream by creating a self contained living area for rent.