RES Articles

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This is the age-old question, with so many variables the answer is not simple. The reason for this is that you must break down your individual position. If your current home is well built, in that there are no glaring building issues that could be very expensive to fix then a renovation is a great option. Let’s say you invest $150,000 into your ageing home by adding a new kitchen, bathroom, floor coverings as well as some electrical work and a fresh paint. The chances are that your house will increase in value by at least $150,000 but likely more. That could be a great result. You would have increased both the value and liveability of your home.

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When discussing an extension, the answer is a lot harder. Do you just need another 8-10 squares of space, or would you have to update your home and extend? Keeping in mind that I’ve seen quotes based on adding a 10 square upstairs extension that are more expensive than building a 30 square single storey house with a volume builder. If you have room in your rear yard, you might find a better solution is to add a granny flat. It’s worth speaking with your council about this. Today, it is generally easier to get an approval for a separate dwelling on your block now than it was 5 years ago. You might even just add a bungalow without plumbing, if it is just more space that you need. This could be a great lower cost alternative.

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Your property might not suit an extension, you might not have the land size you want, you may want to be closer to work or the kids’ schools, you may want to live in a more desirable location closer to the facilities and attractions that you need now, that were not as important to you when purchasing your current house. You will also hopefully be in a better financial position than you were when you purchased your current home.

Selling your home is a huge decision as there are a lot of costs associated with it (stamp duty, commission, moving expenses to name a few). I don’t think I’d be on my own thinking that a new kitchen or bathroom excites me more than paying these fees (especially stamp duty). So, the decision to sell your home must be made with a view to what you will require in the future.

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In summary I’d say, if you love the area that you live in, and it suits you and your family’s lifestyle then it would be preferable to stay and maybe invest some money on improvements. However, if your current home does not suit the whole family and if even with a renovation and/or extension it ticks less than 7 of 10 boxes then a move could be a great idea. Having said that, it is always a good idea to future proof your next property by thinking about what your priorities are likely to be in the next 10 to 20 years. As with most real estate related issues, it is not a simple one size fits all solution.