Is it better to renovate your existing home or buy a new house?

A home is the place where you spend most of your leisure time, make memories and grow with your family and friends. As time flies and new trends appear you might start thinking about renovating your existing house or purchasing a new one. It is a tough choice indeed.

Although both options have their own pros and cons, you should consider some vital points before making a big decision. In such a case, this article can help! 

Here we will discuss the benefits of renovation and when you should consider buying a home over getting it renewed.

How Can Renovation Enhance Your House Appearance? 

Renovating your house means you are investing in bringing a whole new look and more comfort to your house. Hence, there are multiple ways renovation can enhance the appearance of your house, such as:

• Minor Kitchen Remodel: You don't have to invest much in kitchen renovating projects. A minor change to outdated kitchens, like new lighting or paint, can do miracles. 

• Spruce-Up Your Bathroom: Fixing the shower pressure, painting the cabinets, installing new pots, etc., brings a fresh look to your bathroom. 

• Outdoor appearance change: You might find it helpful to refresh the house walls and repaint fence or garage door. It is a great idea to add additional outdoor features such as décor lights or  plant the trees. 

Likewise, there are many other ways renovation adds to the look of your home. For example, you can increase the window size, add individually designed items to complete the look, etc. 

What Sort of Issues Can You Face When You Start Renovation? 

Renovating your house can ease your life after it is complete. But in reality, it can be a hassle, and several issues may arise during the process. Some of them are:

• Council Approvals: You might need to apply for Council Approval if you decide to complete major renovations or raise up the house. Authorities have their own set of rules and conditions that you need to comply with if you live in a character house for example or if you want to extend the house.  

• Budget Overrunning: Needless to say, cash is everything. Whether you want or not, the budget always overruns when you start with the remodeling project. The contractors give new ideas, or the house may need renovation in another corner. You have to keep a budget for overbudgeting also. It’s a tough job. 

Plumbing Issues:  When you get your kitchen or bathroom remodeled, you need to change the corroded pipes, open clogs, and other plumbing problems. The deeper you go, the more problems you will find. Thus, adding to your remodeling budget.

What are the costs involved in Renovation?

Renovation can be as simple as is or costs you hundreds of thousands dollars and take years until full completion. Before you make a decision regarding your house remodelling please familiarise yourself with costs associated:

• Costs of preparing a new home design – if you want to complete a major renovation at home

• Labour costs and Building materials 

• Costs of getting advice from professionals (i.e. architecture, designer, engineer, etc.)

• Council application fees

• Rental fees -  in case you need to move out to complete major renovation 

• Time and emotional costs

What are the costs involved in buying your next house?

House purchase price is not the final cost that you need to be ready to pay if you want to buy a home in Australia. There are some fees and charges involved and as a result the final price is slightly different from the advertised one.

Here are a few upfront costs associated with a house purchase:

• Stamp duty - Stamp duty is one of the largest fees that you need to pay and this amount varies from one state to another. You can use the Stamp Duty Calculator on our website to check it out. 

• Bank Fees - some lenders will charge borrowers fees for establishing the loan while applying for the loan. Usually banks are happy to waive it for new customers

• Legal Fees -  when you buy a next home legal work is unavoidable as the contract of sale needs to be examined and conveyancers need to complete all searched for you depending on complexity of a new purchase. 

• Build & Pest Inspection Costs - it might be very important to organize pest and building inspection especially for old houses if you want to ensure the structural soundness and quality of the building.

Buying a new home includes applying for a mortgage, getting your loan approved, etc. However, you can handle all of this by consulting with NG Loans and get the best rates on the market. 

When you should buy a next home instead of renovating?

We are all attached to the house we live in. Therefore, we always want it to stay in the best of conditions. However, with time it starts losing its strength and durability. You might want to renovate or buy a new house. The decision completely depends on your requirements and budget.  

We suggest you consult a real estate agent to confirm if the house's resale value will increase. It is always better to buy a new home if your locality does not have access to the amenities like schools, hospitals with the latest tech, and more. 

Here are 3 most important tips that you need to consider prior making your final decision:

• Renovation Cost Vs Buying Cost: If you need to get more than half of your house renovated, you might find moving to a new home a better option because of the higher cost of renovation:

• Avoid Construction Zone: As easy as it may sound but renovating your house results in long months of living in a construction zone with the dust, paced up stuff, little space, and more if you can’t afford renting while completing renovation. 

• Need better Amenities: If you are looking for better schooling options, a healthier environment, and access to newer amenities available in other places, then moving is a better option. It helps you provide your family with the best while saving travel time and fare.

Please Book a free consultation with a Mortgage Broker at NG Loans who will help you to organise the Home loan Pre- Approval to buy a next house or finance Renovation of your Dream home.