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For many homeowners, there comes a time when space becomes so much of an issue that a decision is required - convert or move! The prospect of a new home is often very exciting until your consider the cost of buying and selling.
Stamp duty alone on a $750,000 home with a $400,000 loan for example, would be:
- $29,000 in NSW
- $42,000 in VIC
- $21,000 in QLD
- $40,000 in SA
Taxes, fees, stamp duty, conveyancing and legal costs, not to mention the physical costs of packing up and moving, can all add up. Place on top of this the additional mortgage repayments and many buyers are surprised at how much they are paying for an extra room or two.
The Housing Industry Association (HIA) spokesperson Mr Tenant, states renovating a home remains an affordable option for people wanting to increase the size of their homes. Renovations still remain an affordable option for home owners looking to upgrade.
"Having watched the flow of money from new homes to renovations of late, it still suggests to me that renovations are more affordable than new homes," Mr Tennant said.
When planning a move or renovation, cost is one of the primary considerations.
Trading up often get less for their money than they think which in turn can make renovating more logical and cost effective. Once you've decided to renovate, the next big hurdle is coming up with a plan that doesn't break the bank and is not overcapitalising.
While many additions and improvements will add value, it is important to weigh up the size, location and style of your home and renovate accordingly.
Mr Tennant said increasing floor area was the best way to increase the value of a house. "Renovations to kitchen and bathrooms were once perceived as the best value for money, but now it is about adding area and that means either a ground floor or second floor extension," he said.
Neighbours become good friends. By renovating, home owners can avoid the cost of buying another property, moving expenses, taking the kids away from schoolmates and neighbourhood friends and in many cases, leaving behind good neighbours.
And also knowing your particular patch of territory like the back of your hand – the excellent ‘el cheapo’ restaurant, the bakery with the great sough dough bread, etc. etc.
Real Estate Institute of Victoria (REIV) chief executive, Enzo Raimondo, says modest renovations, such as the addition of a bedroom, were a relatively inexpensive way to add value to a house.
Roof Space Converters provide a full range of solutions for a wide variety of budgets, in fact, winning the 2007 MBA & HIA awards for building excellence in the sub $150,000 category is testimony to the our ability to provide excellent value for money.
Interested in finding our more? Contact us on 1300 655 525 or book your obligation-free consultation.
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