22 Jul 2011
If you’re starting to feel like you’re outgrowing your current home then chances are you’re considering the options of either moving or improving.
Trying to decide whether to find a new and bigger home, or extend the one you already have, can be tricky so you have to consider the logistics of doing both.
If you move you’ll have to look for a new property, organise new financing, arrange to either sell or rent out your current home and then pack up and move.
Improving a home on the other hand, will involving sourcing building quotes and advice on the additions you plan to make and finding finances for the approved building works. You may also need to arrange temporary accommodation while your building works are taking place.
Obviously both options could end up costing a fair amount of time and money, so you need to figure out which option will be more profitable and beneficial for you in the long term.
If you want to extend your current home, then you need to be careful not to overcapitalise. Think about how much extensions will cost you and ask yourself if a bigger home on your block will increase the value of your property enough to cover the extensions?
Research what other new and renovated homes are selling for in your area and have a chat to your local real estate agent. If they don’t think your property will go up in value by much with an extension or a new home on the block, then you’ll have to ask yourself whether or not it is worth making major improvements.
So what about the option of moving? With moving you will need to take a look at the current market conditions and figure out whether or not you will be able to afford a new place. Do you need to sell your current home to buy a new one or could you just rent it out? These are important questions to ask yourself, as you will need to figure out how you are going to be able finance a new property.
By adding up the costs and benefits of moving versus improving you will start to get a pretty clear picture of which is the better option for you. For a bit more clarity though, it’s a good idea to talk to builders and local real estate agents to get advice that is specific to your situation.