- Do you like your location?
- What is better for you financially?
- Can you handle going through the renovation process?
Let’s look at these questions in more detail.
Do you like your location?
If the answer is yes, this is something that won’t change if you decide to renovate. So, if your family enjoys the current location and neighbourhood you may wish to consider renovating. However, you need to think about the future needs of your family – will it still be an appropriate neighbourhood in five to ten years’ time?
Something to also think about is whether or not there are features of your home that you dislike that cannot be changed. If this is the case, you may be best to sell and relocate.
What is better for you financially?
It is important to think about the costs of a renovation before you begin and compare this to the cost of upgrading to a new home. In the realm of renovations, overcapitalising is a common occurrence as people can spend more than originally budgeted.
A handy hint is to look at prices in your neighbourhood and what price you could likely get for your home if you had to sell it tomorrow in an emergency – would you recoup your costs?
In terms of selling, there are also costs to consider such as the cost to sell your home with real estate commission and advertising fees, legal fees, the cost of transporting your possessions to a new home and for most, refinancing costs. These expenses can all add up and should be compared to the likely cost of renovations.
Can you handle the renovation process?
The answer to this will depend upon your patience and the scale of renovations. Living in a potential construction zone can really wear on some people’s patience, especially if children are involved. However, we have heard of some people actually enjoying the renovation process and ensuring that milestones are met within predefined time by scheduling and project managing contractors. So, the answer to this question really depends upon your personality type and family situation.
Bearing all of these questions in mind, deciding to whether to sell or renovate is still an entirely personal decision. However, before you make your decision it is important to consult the experts so that you can more accurately weigh up the costs, pros and cons of both and make an informed decision.
If you are thinking of renovating then look at REFRESH