Should You Buy, Or Renovate? Understand What’s Right For You.

To buy or renovate? It’s a tough decision – both choices have a large impact on your life and your budget – especially when it’s the wrong one! 

Before you decide, do your homework and get a solid understanding of all likely costs. How will your choice affect your end goal? What are you trying to achieve? 

Here are some key considerations to help you figure it out. 

Tradies, architects, builders, and supplies 

While we all wish we had a Macca, Dave, and Trev tradie network on speed dial – chances are you’ll have to outsource a lot of your reno work to builders and tradies.  

Factor in costs you’ll need for electricians, plumbers, architects, designers, builders, and council approvals for any building raises or extensions. Do the legwork – talk to at least 3 builders for quotes and confirm some of their prices with local tradies to get a solid understanding of your required budget. Do the same with suppliers. 

Don’t forget to explore cheaper options like, painting the wall tiles and cupboards instead of replacing them, to keep costs low. 

Budget blow outs 

The WOW factor in most homes is the kitchen, bathroom, and outdoor spaces. Anywhere there’s plumbing, you’re looking at higher expenses. 

It’s not just what you can see you’re replacing that costs money – it’s the stuff that’s hiding underneath tiles, or behind wall sheeting and bathroom cabinets, that will cause the most damage to your budget. 

Leaking pipes, rotting walls and cabinetry, termite damage, damp foundations – once you lift the lid you can’t go back from that. So, always have money reserved for damage control. Aim for 10-15 per cent extra cash to cover you for these nasty surprises. 

I also recommend arranging a building and pest inspection of your property for a comprehensive report on the condition of your house before you begin. 

Over-capitalising 

It’s simply not true that the more you pump into a renovation the higher your return when it comes to selling. Owning the flashiest house in a dodgy street isn’t going to give you the same return as having a renovated home in a desirable location like, Ascot, for example.  

You must research your suburb performance and investment potential or risk throwing your dollars into a sink hole. 

Buying New  

Buying somewhere new comes with its own expenses that aren’t to be sneezed at. 

Like, agent’s fees and stamp duty deducted from your sale price. Plus, you’ll need at least $10,000 + on hand to manage purchase costs like building and pest, lender’s fees and LMI, titles and conveyancer fees, moving costs, storage (if your dates don’t line up).  

Add your personal time, stress, and running around required for inspections and negotiating with agents! 

Calculate how much cash you’ll have left from your sale to put towards your deposit. Aim for a 20% deposit to avoid LMI on your new loan or, be prepared to have an extra $10,000+ thrown onto your loan to cover the bank. 

Understand Your Goals and Expectations 

Brisbane home-owners reportedly spent $206.6 million on renovations last year. But, it’s not for everyone. It can make or break a family when you don’t understand your overall goals and objectives.  

What are you trying to achieve? Increased capital? More comfortable living environment? Safer, more convenient area to raise your family? Long term property portfolio? 

Buying and renovating are life-changing decisions. Make sure you pick the right option for your family’s lifestyle needs. 

Get in touch if you’re looking to buy or renovate. I’ll help you gain a savings kick to move you there, faster.