Are you trying to decide whether to renovate your current home or simply invest in a new property? Maybe you’re weighing up the pros and cons, trying to decide on a budget, and getting a little overwhelmed with all the property market information out there. At ACTON, we like to help you simplify things and look at the most important aspects of your decision.
One of the most important aspects to look at is the area you are currently situated in, and the areas you would be looking in to buy. If you are leaning towards renovating, do you live in a suburb where house prices are increasing and your resale value would be worth the renovations? Does your area have all the amenities and access that new buyers might want down the track? Compare your current area to suburbs that you can afford to buy in, and consider which will be more beneficial if you do want to sell or rent out your property in a few years.
Make sure you fully cost out the renovations you are hoping to do, and weigh up that cost against a new house deposit or investment. It’s also important to remember that when renovating a home, you will likely be able to stagger out renovations to control your budget – whereas an entire new home investment is often a large initial outlay. Consider resale value if you are leaning towards renovating; how much are you likely to make back on your home after renovations?
Character and charm
Next, think about the state of your current home. There are evidently a few bits and pieces that need to be refreshed if you’re thinking about renovating – but is your property a character home that will strike nostalgia with potential buyers, or is it a little too run down to fix completely? Make sure you invest in a building inspection to check for potential structural issues before going ahead with a renovation, and get your home valued as is to establish what you are working with.
This decision may come down to your personal and family needs. Think carefully about where you are at now, and where you might be in five or ten years. If you renovate, will you have enough space – or perhaps too much? Will the area and house still suit you as you get older? And, will the time, money and energy spent on renovations be manageable in your existing circumstances? Be honest with yourself and brainstorm the logistics of a potential renovation, and think carefully about the future.
Not sure what your next step is?
Looking to buy or get your home evaluated? Get in touch with the expert professionals at ACTON; we’re here to help you make the best decision when it comes to real estate in Western Australia.